Midvaal moves to privatise power supply

It believes the move will lead to increased revenue and a reduced reliance on state-owned entities.

The municipality said it recently conducted a feasibility study, which identified major issues with the current electricity structure. It believes a private company could solve these issues and manage the grid more effectively. 

The shift to a private company has been in the works for five years, with  Midvaal’s MMC for Engineering, Reginald Hubbard, saying they have already shortlisted independent energy providers.

“We think that a private entity will maintain and run the infrastructure much more efficiently and by doing so and being profit-driven, our residents will benefit from that. The servicing of the infrastructure will pick up, and the revenue tariff will decrease or remain the same,” added Hubbard.

Hubbard noted that because this electricity structure is new to the country, the municipality had to design a system from scratch. 

“It took us a couple of years, and there were funding issues, but we are now at the final stages, where we are seeking quotations and approval from private companies.”

He added that the private entity will not supply some areas in Midvaal currently served by Eskom and its infrastructure.

“We, as Midvaal, are in the process of opening up the industry to the independent energy providers,” Hubbard told Jacaranda FM News.

The decision comes as the National Energy Regulator of South Africa (Nersa) holds public hearings on Eskom's request for a further 36% electricity tariff increase next year.

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