Virtual wheeling: A boon for energy-strapped SA, but Salga wary of it slashing municipal revenue

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Virtual wheeling: A boon for energy-strapped SA, but Salga wary of it slashing municipal revenue
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Virtual wheeling: A boon for energy-strapped SA, but Salga wary of it slashing municipal revenue

Load shedding has led to the rapid adoption of renewable and clean energy, such as solar, by households and businesses seeking to mitigate the impact of blackouts. This leads to fewer electricity purchases from Eskom and municipalities, and contributes to their declining revenues.SA Local Government Association CEO Sithole Mbanga says funding models for municipalities must be reevaluated as the revenue that municipalities can raise from the sale of electricity continues to trend downward.

– a system of electricity supply where a buyer or offtaker of electricity contracts with or buys power from more than one independent power producer – could have on municipal revenues.South Africans need to be in the know if we want to create a prosperous future. News24 has kept the country informed for 25 years, and we're about to enter a new chapter of fearless journalism. Join our free subscription trial to unlock this story and a world of news aimed to inform, empower, and inspire.

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