Illegal electricity connections and theft of meters cost Buffalo City Metro a whopping R50-million between July 2015 and January 2016.
The illegal connections have not only led to the loss of money in BCM but claimed 44 lives including a nine-month-old baby.
In total, the metro incurred a loss of R98.4-million in just seven months for illegal connections, metering theft and general power faults.
A damning report submitted to council by the acting HoD for infrastructure services, Luyanda Mbula, last month revealed how the metro is battling with the crisis of electricity losses.
In his report Mbula said although the 2015/16 financial years’ analysis showed a slight decrease in both technical and non-technical losses, the figures were “not acceptable in terms of the applied Nersa standard of 9% and BCM is still at risk if resources are not provided to revenue protection initiatives”.
In the 2014-15 financial year the metro lost R162.4-million while in the 2013-14 financial year the metro incurred a huge R150-million loss.
“A total of 44 electrocutions have taken place since 2012 due to this problem (electricity theft),” Mbula highlighted.
He said the shortage of skilled staff in the revenue protection section will result in a threat to BCM’s operational capacity if the theft of electricity is left unchecked.
“In BCM’s case the past three financial years up to end January 2016 has highlighted that we have lost R233.92-million to the scourge of electricity theft and whereby revenue protection action can recover some of this lost income and take future preventative measures in addressing punitive action for illegal electricity connections and connectors,” he said.
He warned that if the metro was serious about addressing electricity theft occurring on its electrical network, the revenue protection section must be capacitated with both staff and operational budget.
“It is recommended that in future set budgets, 2% of electricity derived income (be) budgeted for revenue protection activities until such time our total electricity losses fall within the Nersa acceptable standard bracket” or when the metro has complied with the finance minister’s request for all municipalities to cut their electricity losses by 4.6% to achieve the national budget deficit. — mamelag@dispatch.co.za
Metro saddled with massive costs of rampant power theft
The illegal connections have not only led to the loss of money in BCM but claimed 44 lives including a nine-month-old baby.
In total, the metro incurred a loss of R98.4-million in just seven months for illegal connections, metering theft and general power faults.
A damning report submitted to council by the acting HoD for infrastructure services, Luyanda Mbula, last month revealed how the metro is battling with the crisis of electricity losses.
In his report Mbula said although the 2015/16 financial years’ analysis showed a slight decrease in both technical and non-technical losses, the figures were “not acceptable in terms of the applied Nersa standard of 9% and BCM is still at risk if resources are not provided to revenue protection initiatives”.
In the 2014-15 financial year the metro lost R162.4-million while in the 2013-14 financial year the metro incurred a huge R150-million loss.
“A total of 44 electrocutions have taken place since 2012 due to this problem (electricity theft),” Mbula highlighted.
He said the shortage of skilled staff in the revenue protection section will result in a threat to BCM’s operational capacity if the theft of electricity is left unchecked.
“In BCM’s case the past three financial years up to end January 2016 has highlighted that we have lost R233.92-million to the scourge of electricity theft and whereby revenue protection action can recover some of this lost income and take future preventative measures in addressing punitive action for illegal electricity connections and connectors,” he said.
He warned that if the metro was serious about addressing electricity theft occurring on its electrical network, the revenue protection section must be capacitated with both staff and operational budget.
“It is recommended that in future set budgets, 2% of electricity derived income (be) budgeted for revenue protection activities until such time our total electricity losses fall within the Nersa acceptable standard bracket” or when the metro has complied with the finance minister’s request for all municipalities to cut their electricity losses by 4.6% to achieve the national budget deficit. — mamelag@dispatch.co.za
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