Eskom welcomes NERSA’s approval of a Distribution Agency Agreement enabling Warden and Ezenzeleni areas under Phumelela Local Municipality in the Free State to transfer electricity services to Eskom
Thursday, 20 March 2025: Eskom welcomes the National Energy Regulator of South Africa’s (NERSA) approval to amend its distribution facility licence, incorporating the Warden and Ezenzeleni areas, into its licensed electricity supply areas in the Free State. This follows the Phumelela Local Municipality’s resolution to transfer electricity services and infrastructure in these areas to Eskom after the successful implementation of an Active Partnering solution that led to a Distribution Agency Agreement. NERSA’s approval followed an extensive process, including public participation and technical and economic assessments.
“Eskom and Phumelela Local Municipality have fostered a strong partnership since entering into an Active Partnering Agreement in 2017 that has helped curb electricity losses, reduce the municipality’s debt growth rate, and improve both service quality and payment levels,” said Monde Bala, Eskom’s Group Executive for Distribution.
“Phumelela was the first municipality in South Africa to adopt Eskom’s Active Partnering solution, which improved payment levels and allowed the municipality to focus on other essential service delivery priorities,” stated Bala.
Active Partnering is an initiative designed to support municipalities in delivering sustainable local government services. Through this agreement, Eskom provides professional services, including engineering and revenue collection, to enhance the technical and financial sustainability of electricity provision.
On 13 August 2022, the Phumelela Local Municipality Council resolved to transfer electricity services and infrastructure in Warden and Ezenzeleni to Eskom. By transferring the service to Eskom, Phumelela can now focus on other municipal responsibilities while ensuring residents receive reliable electricity supply.
“As Eskom, we are committed to ensuring a smooth transition and aim to complete the full transfer of Warden and Ezenzeleni customers by the end of May 2025. We appreciate Phumelela’s collaboration and look forward to extending our services to these communities for sustainable electricity delivery,” concluded Bala.
Eskom remains dedicated to working with municipalities to improve electricity supply sustainability and service delivery across South Africa.
Municipal debt remains one of Eskom’s biggest challenges. Collecting municipal debt is a key focus for Eskom. The company will employ various strategies to recover owed funds, enabling investment in maintaining and strengthening electricity supply, fostering socio-economic growth, and reducing the need for interventions like load shedding.
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