Energy regulator Nersa has appointed someone to hear the dispute between Rural Maintenance and Eskom about the former’s mitigation of load shedding in the town of Frankfort. The failure of the Mafube Local Municipality to support Rural Maintenance, however, may derail the whole process.
Rural Maintenance is managing Mafube’s electricity distribution function in terms of a 25-year contract.
The dispute is about Rural Maintenance’s use of excess energy generated by four solar farms, to spare Frankfort residents from load shedding.
Eskom says that if Rural Maintenance is permitted to continue, a large number of its customers will want to do the same ‘and Eskom’s ability to effectively manage the grid will therefore be severely compromised’.
The court application by Rural Maintenance was dismissed due to the failure of the municipality to file an affidavit confirming its support for the company.
As an agent of the municipality, Rural Maintenance does not have the legal standing to litigate unless it demonstrates support from the municipality, which is the entity licensed to distribute electricity in the area.
Mafube acting municipal manager, advocate Mothusi Lepheane, says his hands are tied.
The municipality is under administration and the administrator has referred the contract between the municipality and Mafube to National Treasury for review.
Until the review has been finalized, Lepheane says he can’t enter into any matter pertaining to the contract on behalf of the municipality.
When the municipality is excluded, the company has a 100% collection rate and Eskom gets its full payment for bulk purchases every month, except for the portion used by the municipality.
The only collections done by the municipality are those performed by Rural Maintenance on its behalf.