Buffalo City loses R91m to electricity theft in six months

THE scourge of electricity theft has cost the Buffalo City Metro (BCM) R90.8-million in revenue in just six months.

The loss of income was recorded between January and June last year 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 forms part of a total R162.1million lost in 11 months of the past financial year.

Acting head of infrastructure services, Luyanda Mbula, said in a report tabled before the council last month that the metro’s dedicated illegal services removals team did not have any impact on the state of illegally connected electricity connections across BCM.

The report comes as the local authority has declared war on businesses allegedly 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 allegedly discovered illegally connected wires during a raid.

In the 11 analysed months of the 2015-16 financial year, the loss totalled 14.78%.

“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.

A further two teams of dedicated illegal electricity removals contract teams were required to have an impact on the rate at which illegal connections were being reconnected, Mbula said.

[The losses] will have a dire impact on future cash income for BCM