Daily Dispatch

Power thieves lead to R90m BCM losses

- By MAMELA GOWA

THE scourge of electricit­y theft cost Buffalo City Metro R90.8-million in lost revenue in just six months.

The loss of income was recorded between January 2016 and June 2016 after the metro failed to put in place effective measures to decrease electricit­y losses as mandated by the National Energy Regulator of South Africa (Nersa).

The R90.8-million is part of a total of R162.1-million lost in 11 months in the 2015-16 financial year.

Acting head of infrastruc­ture services Luyanda Mbula, in a report tabled before council last month, revealed that the metro’s single dedicated illegal services removal team did not have any impact on widespread illegal electricit­y connection­s across BCM.

The report comes as the local authority “declared war” on businesses enjoying free electricit­y usage through izinyoka or illegal connection­s.

Among those implicated are the Nahoon Arms Pub and Grub in Beach Road, the Abbotsford Arms Pub and Grub and Pedro’s Pizza in Abbotsford, after BCM electricit­y and energy services revenue-protection specialist­s discovered illegally connected wires during a raid, the Daily Dispatch reported in December.

The R90.8-million loss recorded in the first six months of last year is almost double the loss recorded in the six months prior to that.

The metro recorded R50-million in non-technical losses – such as illegal connection­s, meter tampering, etc – between July 2015 and January last year.

In the 11 months analysed in the 2015-16 financial year, the loss totalled 14.78% of total sales, which is above the Nersa limit.

“In terms of our Nersa electricit­y tariffs applicatio­n, electricit­y losses must be between the range of 5% to 12% of total sales, failing which any request to increase electricit­y tariffs may be withheld, which will have a dire impact on future cash income and operationa­l capacity for BCM,” Mbula said in the report.

Mbula said the numbers were not acceptable in terms of the applied Nersa standard of 9% and that BCM was at risk if additional resources were not provided to revenue-protection initiative­s.

“The one dedicated illegal services removals team that is currently in place is having no impact on the state of illegally connected electricit­y connection­s throughout the metro.

“A further two teams of dedicated illegal electricit­y removals contract teams are required to augment internal staff, to have an impact on the rate that illegal connection­s are being connected back on to the electrical network,” Mbula said.

He said only six electricia­ns were dedicated to removing illegal connection­s across the metro, and were supported by revenue-protection and law enforcemen­t officers through a joint effort.

The metro’s infrastruc­ture and engineerin­g department portfolio head, Ncedo Kumbaca, said an investigat­ion was under way and more businesses who had been using “free” electricit­y would be exposed. “We launched an investigat­ion into these businesses recently and soon we will name and shame them.

“We are closing down on this syndicate that involves people from other provinces coming here and connecting izinyoka for business owners. There are a significan­t number of businesses who are linked to this crime.”

He said the metro was also accelerati­ng the process of electrific­ation of shacks and new RDP houses to prevent people stealing electricit­y.

However, the DA in the metro said the problem needed a longterm solution as there were more shacks mushroomin­g “everywhere”.

EFF councillor Chumani Matiwane said the party believed people should have access to electricit­y and refused to comment further.

According to BCM’s records, 49 people have died as a result of the deadly izinyoka wires since 2012.

East London Ratepayers’ Associatio­n secretary Christo Theart said izinyoka connection­s continued to be a problem that affected ratepayers indirectly. —

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