{"id":89914,"date":"2015-06-05T14:37:17","date_gmt":"2015-06-05T12:37:17","guid":{"rendered":"http:\/\/businesstech.co.za\/news\/?p=89914"},"modified":"2015-06-05T14:37:17","modified_gmt":"2015-06-05T12:37:17","slug":"30-of-sa-municipal-income-is-from-electricity-sales","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/energy\/89914\/30-of-sa-municipal-income-is-from-electricity-sales\/","title":{"rendered":"30% of SA municipal income is from electricity sales"},"content":{"rendered":"<p>Acting Eskom CEO Brian Molefe recently said that he has discussed the idea of bypassing municipalities as electricity distributors in future.<\/p>\n<p>Molefe told MPs that municipalities which were not paying Eskom could be bypassed as distributors. Instead, the households \u2013 and businesses \u2013 could in future be supplied directly by Eskom.<\/p>\n<p>How would municipalities be affected if this proposal is adopted? Approximately half of the country&#8217;s 283 municipalities who distribute electricity for Eskom and derive a considerable portion of their revenue base from extra levies charged for power provision.<\/p>\n<p>According to <a href=\"http:\/\/www.statssa.gov.za\/?p=4772\">StasSA<\/a>, approximately 30% of total municipal income was earned from sales of electricity during the 2012\/13 financial year. That is R77.2 billion out of a total income of R258 billion.<\/p>\n<p>&#8220;The financial viability of many municipalities could be tenuous if they were no longer able to trade economic services, such as electricity,&#8221; the stats body said.<\/p>\n<p>In the major economic hubs,\u00a0 37.1% of income in Gauteng municipalities, is earned from electricity sales, followed by Western Cape at 31.1%.<\/p>\n<div id=\"attachment_89926\" style=\"width: 610px\" class=\"wp-caption aligncenter\"><a  data-lightbox=\"post-image\" href=\"http:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2015\/06\/Portion-of-municipal-incomed-earned-from-electricity-sales.png\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-89926\" class=\"wp-image-89926\" src=\"http:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2015\/06\/Portion-of-municipal-incomed-earned-from-electricity-sales.png\" alt=\"Portion of municipal incomed earned from electricity sales\" width=\"600\" height=\"392\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2015\/06\/Portion-of-municipal-incomed-earned-from-electricity-sales.png 1207w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2015\/06\/Portion-of-municipal-incomed-earned-from-electricity-sales-300x196.png 300w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2015\/06\/Portion-of-municipal-incomed-earned-from-electricity-sales-1024x669.png 1024w\" sizes=\"auto, (max-width: 600px) 100vw, 600px\" \/><\/a><p id=\"caption-attachment-89926\" class=\"wp-caption-text\">Portion of municipal income earned from electricity sales<\/p><\/div>\n<p>A host of municipalities earned more than 40% of their income from electricity sales in 2012\/13, with sales at uMhlathuze (Empangeni and Richards Bay) accounting for 53.5%, StatsSA noted.<\/p>\n<p>One metropolitan council appeared in the list: Ekurhuleni (42.1%), placing 10th overall.<\/p>\n<div id=\"attachment_89930\" style=\"width: 610px\" class=\"wp-caption aligncenter\"><a  data-lightbox=\"post-image\" href=\"http:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2015\/06\/Municipalities-that-earn-more-than-40-from-electricity-sales.png\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-89930\" class=\"wp-image-89930\" src=\"http:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2015\/06\/Municipalities-that-earn-more-than-40-from-electricity-sales.png\" alt=\"Municipalities that earn more than 40 from electricity sales\" width=\"600\" height=\"355\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2015\/06\/Municipalities-that-earn-more-than-40-from-electricity-sales.png 1380w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2015\/06\/Municipalities-that-earn-more-than-40-from-electricity-sales-300x178.png 300w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2015\/06\/Municipalities-that-earn-more-than-40-from-electricity-sales-1024x606.png 1024w\" sizes=\"auto, (max-width: 600px) 100vw, 600px\" \/><\/a><p id=\"caption-attachment-89930\" class=\"wp-caption-text\">Municipalities that earn more than 40 from electricity sales<\/p><\/div>\n<h3 class=\"my-4\">More on Municipalities and Eskom<\/h3>\n<p><strong><a href=\"http:\/\/businesstech.co.za\/news\/general\/85810\/how-molefe-plans-to-pull-eskom-out-of-its-financial-mess\/\">How Molefe plans to pull Eskom out of its financial mess<\/a><\/strong><\/p>\n<p><strong><a href=\"http:\/\/businesstech.co.za\/news\/general\/87564\/eskom-non-payers-get-cut-from-funding\/\">Eskom non-payers get cut from funding<\/a><\/strong><\/p>\n<p><a href=\"http:\/\/businesstech.co.za\/news\/general\/87178\/eskom-price-hike-decision-in-june\/\"><strong>Eskom price hike decision in June<\/strong><\/a><\/p>\n<p><strong><a href=\"http:\/\/businesstech.co.za\/news\/general\/87024\/eskoms-greed-will-lead-to-bankruptcy\/\">Eskom\u2019s greed will lead to bankruptc<\/a>y<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Acting Eskom CEO Brian Molefe says that he has discussed the idea of bypassing municipalities as electricity distributors in future.<\/p>\n","protected":false},"author":10,"featured_media":77487,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9874],"tags":[1164,26,5769],"class_list":["post-89914","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-energy","tag-eskom","tag-headline","tag-statssa"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/89914","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=89914"}],"version-history":[{"count":5,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/89914\/revisions"}],"predecessor-version":[{"id":89932,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/89914\/revisions\/89932"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/77487"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=89914"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=89914"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=89914"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}