Nine municipalities have obtained council resolutions authorising the signing of distribution agency agreements (DAAs) with Eskom following consultation processes with municipal councils and other stakeholders.
According to Eskom, the agreements are part of efforts to improve electricity distribution operations, revenue collection and infrastructure management in municipalities facing financial and operational challenges.
The utility says the DAAs aim to strengthen electricity service delivery, improve revenue management and address maintenance backlogs in local distribution networks. The consultation process included engagements with municipal leadership, organised labour, business forums, traditional leaders and community representatives, Eskom adds.
Under the agreements, ownership of municipal electricity distribution assets will remain with municipalities. Eskom will instead act as an agent on behalf of participating municipalities to support distribution operations and revenue collection functions.
The local municipalities are Nketoana, Mpofana, Masilonyana, Nala, Ngwathe, Renosterberg, Thembelihle, Govan Mbeki and Kgetlengrivier.
According to the utility, the DAAs are part of broader interventions aimed at addressing rising municipal debt and improving the sustainability of electricity distribution systems.
Eskom says municipalities continue to face pressure from ageing infrastructure, electricity losses, non-payment and declining revenue collection rates.
Implementation of the agreements will proceed once all regulatory and governance processes have been completed.
