South Africa’s electricity distribution system is “an albatross” beset by fighting between the national power utility and municipalities as the government takes steps to stabilize the grid, according to the electricity minister.
State-owned Eskom Holdings SOC Ltd. has focused on improving the performance of the mainly coal-fired power stations that have become unreliable due to neglected maintenance, resulting in record electricity outages that curb economic growth.
“The one area that remains an albatross is the distribution side,” he said. That includes disputes between Eskom and municipalities that owe the utility about 62 billion rand in arrears for electricity they sold on to customers. Financially distressed municipalities are unable to maintain local distribution assets, which makes the equipment more prone to breakdowns, Ramokgopa said. Illegal connections also add strain to the system.South Africa signed an agreement with China’s largest grid operator during the BRICS summit in Johannesburg last week on cooperation in clean energy investments.
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