City fears exodus of Eskom users

28 April 2015 - 02:01 By Olebogeng Molatlhwa

The City of Johannesburg fears it will lose millions, if not billions of rands, should residents choose to live off the grid. A swot analysis in City Power's draft Business Plan 2015-2017 - recently presented to the Environment and Infrastructure Services Committee - noted that many residents could strive to set up an independent power source amid Eskom's regular rolling blackouts.City officials fear an independent electrical supply "will be cheaper than City Power's retail price".An exodus of ratepayers could leave the poor in a desperate situation.City Power spokesman Sol Masolo said: "The most pressing customer desire is to have continuous supply and be unaffected by load-shedding."Municipalities make a surplus from the sale of electricity to fund other services, such as clinics, parks and libraries. Lower surplus from electricity sales will require an increase somewhere else - for example on rates and taxes," Masolo said.He said: "Several utilities, for example in California, are facing bankruptcy because many of their customers have become self-generators, but still expect the grid supply to be available for back-up purposes."In effect, the grid companies no longer make the same money from electricity sales, but have to maintain the grid anyway. The worst case is in fact where the customer goes 'off-grid' and the utility company is left with stranded distribution assets."..

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