Summary

DEPARTMENT OF ENERGY

The department of energy says there is currently an access generation of electricity, but the
challenge is distribution. The problem with distribution was lack of infrastructure. The
department requested funding. They department also say have three types of consumers
(residence, industrial and retail). The challenge faced by the department overload and illegal
connections and people generate their own electricity. Lastly the department (DOE) energy
said they are also undermined by Eskom and the municipalities also owe Eskom. They have
developed a program called Approach to distribution Assets Management to try and fast track
interaction in their problems.

The department came with the funding mechanism (ADAM) to try and find a way to get
funding. This was because the National treasury was constrained to give them grands since
they couldnt not increase the tariffs. This ADAM will find the department through the central
loan system.

ESKOM

Eskom claim they are prime responsibilities are to generate, distribute and transmission and
not only municipalities are responsible for distribution. Eskom say they provide industrial
support in leadership and they have partnership with distributors. The challenges faced by
Eskom where safety, theft and energy losses and they efficiency of the process. Eskom believe
they will access electricity by 2020. Eskom refused to have separate funding model for the
municipalities.

Eskom had to reduce interest from 5% to 2.5% and days to pay has been increased to 30 days.
Yet the effect has not yet been noticed.

NERSA
Nersa says the municipalities are not using the tariff for municipalities as they should. They
continued saying some municipalities are resisting being regulated by Nersa. According to
Nersa their challenges are high turn-over because their staff keeps resigning. Other
challenges is that people dont know how to fill in the applications, others submit late and the
municipalities dont have capacity to produce electricity.
Nersa decided that to improve application efficiency they will conduct workshops to assist
municipalities on how to complete the application forms tariffs and audits. Nersa decided that
they will conduct annual audits to ensure that the licensees always comply