Joburg targets solution for cable theft

·27 May 2014

The City of Johannesburg says it will target a solution to the electricity outages due to theft and vandalism.

Delivering a budget speech for the city, Finance MMC Geoffrey Makhubo said that a combined operational and capital budget for the city has grown to a record R47.1 billion, after exceeding R40 billion last year.

City Power was allocated an operating budget of R13.2 billion and a multi-year capital budget of R7.3 billion.

Makhubo said that the main programmes to be undertaken would include refurbishment of ageing infrastructure, investment in new bulk infrastructure in various areas such as Rivasdale, Reuven, Berea, Ferndale, Lenasia and Halfway House, to name a few.

“Many of the outages we experience are due to theft and vandalism and therefore we are investing in a comprehensive system to deal with the issues of vandalism and cable theft including alarm monitoring devices,” Makhubo said.

In order to protect and safeguard future revenue and ensure sustainability in the use of electriCity, Makhubo said the city will also be investing in replacing obsolete meters with prepaid units and automated pre-paid (smart meters) city wide.

Regarding rates and tariffs, electricity would increase by an average of 7.05%, which would provide the city with revenue of R13.6 billion.

The proposed average tariff increase for electriCity of 7.05% is lower than the NERSA/ Eskom tariff proposed increase of 7.3%.

“Registered indigents will continue to receive free electricity, free water, and free sanitation in terms of Johannesburg’s extended social package,” Makhubo said.

He noted that the city applies a stepped tariff structure for electriCity services. The effect thereof is that the more electriCity a consumer uses the more they pay, with the aim to reduce electriCity usage.