South Africa: Could NERSA Remove Nelson Mandela Bay's Electricity Distribution Licence?

On 18 December, the National Energy Regulator of SA convened its inaugural Tribunal sitting, setting in motion accountability for municipalities failing to adhere to critical maintenance protocols and other breaches of their licensing conditions. The implications of non-compliance are dire, with municipalities facing fines of up to R2-million a day.

On 18 December, the National Energy Regulator of South Africa (Nersa) called its inaugural tribunal sitting to deal with municipalities not in compliance with their electricity distribution licence conditions. Not having a maintenance plan or not complying with a maintenance plan was among the reasons provided by Nersa that could lead to steps being taken against a municipality.

Municipalities can be fined up to R2-million a day for continuing transgressions.

Last week Thursday, in Nelson Mandela Bay, two 132 kV electricity transmission towers collapsed due to what the metro described as "infrastructure vandalism, compounded by adverse weather conditions".

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Visuals of the remaining structures, however, clearly showed that the pylons were badly rusted - on Friday, during a briefing, the municipality admitted that rust was a "contributing factor". Over the weekend, the metro's executive mayor Babalwa Lobishe said an Eskom team was checking the stability of the rest of the pylons.

In September last year, then acting executive director of Nelson Mandela Bay's electricity and energy directorate, Tholi Biyela, announced that he was leaving the metro to pursue opportunities elsewhere.

His departure followed the submission of a detailed turnaround strategy for the troubled directorate - a document that, in hindsight, reads...

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