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NGWATHE LOCAL MUNICIPALITY APPLIES FOR INCREASE IN ELECTRICITY SUPPLY
THURSDAY, 25 JUNE 2020: On Monday, 22 June 2020, Ngwathe Local Municipality and Eskom had a second engagement on the amount of electricity supplied to the Municipality, also known as Notified Maximum Demand (NMD). NMD is the contracted amount of electricity that Eskom reserves for supplying a customer in the Electricity Supply Agreement (ESA) between the two parties.  In terms of this agreement, Eskom is contractually obliged to provide 21 MVA to Ngwathe Local Municipality.
 
On 25 May 2020 the Municipality exceeded its contracted NMD and Eskom subsequently applied NMD limitation in order to keep the amount within the contracted agreement.  According to the Municipality, a major contributor to NMD exceedance is meter tampering and/or illegal connections.  As a result of these illegal activities, the Municipality is unable to recover income and pay Eskom for services rendered. Paying customers unfortunately are impacted by consumers that opt to tamper and/or connect illegally.
 
In terms of the NMD limitation, the Municipality is informed when the NMD reaches 90% of its load in order for the Municipality to apply load reduction.  If the Municipality does not respond by reducing its demand, Eskom is forced to open its supply breaker, resulting in interruption of supply to the Municipality.  NMD limiting is a necessity to ensure that essential equipment is not stressed which can lead to damage and failure when design limits are exceeded.  Ultimately, NMD limiting is implemented to ensure the integrity of the system and protection of the community in which the equipment is hosted.
 
Ngwathe Local Municipality has resubmitted an application to increase the amount of electricity supplied in the agreement. NMD increase is not automatically granted by Eskom as there are conditions that must be accepted by defaulting municipalities.  Until such time that the application has been granted, residents will have to endure rotational load reduction, which will be implemented by the Municipality. A schedule of areas affected by rotational load reduction has been developed by the Municipality, and will be published by the Municipality. 
 
The Municipality will continue to audit, remove illegal connections and replace faulty or tampered meters as part of its credit control management.
 
 
ENDS