More players interested in Midvaal electricity outsourcing

Midvaal Local Municipality, the only one in Gauteng to get a clean audit report from the auditor-general in the latest round of audit outcomes, has started the process of outsourcing its electricity function for 20 years in the form of a public-private partnership (PPP).

- Antoinette Slabbert

The request for pre-qualification (RFQ) closes on 13 December, according to information on the municipality's website.

The successful bidder will be expected to finance, design, manage, operate, maintain and expand the municipality's distribution network and provide electricity distribution services currently provided by the municipality.

It will do the bulk purchases, which may include renewable energy from independent power producers and coordinate with the municipality's other functions and staff, the invitation to bidders states.

The municipality will retain the non-revenue electricity services such as street lighting, and will man the control room. It will also be responsible for drafting tariff applications to be submitted to energy regulator Nersa.

Logical move This comes as the South African Association of Independent Power Producers (Saippa) called for the appointment of private companies to assist struggling municipalities with their electricity functions.

Municipalities at the end of September owed Eskom about R9 billion in arrear debt for bulk purchases.