Bheke Stofile, the president of the South African Local Government Association, says a 'vicious cycle' of contradictory policies that introduce new energy players will undermine municipalities' ability to raise revenue and contribute to the just energy transition.

Listen to this article 7 min Listen to this article 7 min At the Just Energy Transition (JET) Municipal Conference at the Gallagher Convention Centre in Midrand on Monday, Bheke Stofile, the president of the SA Local Government Association (Salga), said a contradictory mix of policies and a clause in a recently signed Act "may undermine the very purpose of our discussion today: the municipal energy transition".

This month, President Cyril Ramaphosa signed into law the Electricity Regulation Amendment (ERA) Act, which "sets out far-reaching reforms of South Africa's electricity sector, including the establishment of a competitive electricity market" and "provides for an open market platform that allows for competitive, wholesale or retail buying and selling of electricity".

The ERA, however, includes a clause that Stofile argues is contrary to municipal attempts to contribute to SA's nascent just energy transition.

The new law will open the electricity market to allow customers more options for buying electricity from different sources, rather than just Eskom or municipalities, potentially reducing revenue for already heavily indebted local governments.

Municipalities' role in addressing climate crisis

"COP28 [the 28th Conference of the Parties to the United Nations Framework on Climate Change] has set a clear...