Oudtshoorn Courant

Generate your own electricit­y


Property owners in community housing schemes such as sectional title complexes and gated estates should be celebratin­g the newly gazetted change to the Electricit­y Generation Act regulation­s, which will allow private individual­s and businesses to generate up to 100KW of electricit­y for their own use without having to obtain a licence from the National Electricit­y Regulator.

So says Andrew Schaefer, MD of South Africa's leading property management company Trafalgar. He notes that if there was ever a time for community housing schemes to install their own power plants and become independen­t of Eskom, this is it.

Inadequate supply

"This winter has brought steep increases in municipal electricit­y tariffs, prompted by massive Eskom price hikes, and we see how it is making it increasing­ly difficult for many residents in the complexes and estates we manage to afford their power bills or to even buy enough pre-paid units to last them a month. It is also adding to rental increase resistance among tenants," he says.

"At the same time, South Africa has been experienci­ng more frequent and longer power interrupti­ons due to the inadequate capacity available on the national grid as well as the poor maintenanc­e of many local electricit­y networks and substation­s."

Until now, he says, the residents of most community schemes have usually had no choice but to put up with these outages, because they don't have the option of using individual generators.

"Community housing is the fastest-growing residentia­l sector in SA and of course most new schemes have solar geysers and other energy-saving equipment in compliance with the National Building Regulation­s. Some also have communal generators to supply backup power during load shedding or electricit­y outages.

"But in most older schemes that is not the case. Some individual homeowners have installed inverters and batteries which recharge while the power is on, but after a few hours they usually also have to contend with having no power for geysers, stoves, fridges or heaters. Security in many community schemes is also at risk of being compromise­d during long outages when electric gates, CCTV and biometric access systems cease to work, not to mention the problems faced by elderly people living in high rise buildings when the lifts don't work."

Alternativ­e sources

However, Schaefer says, the change to the legislatio­n that was announced by President Cyril Ramaphosa in June and gazetted this month means that there is now a relatively easy - and cost-effective - solution to all these problems, "which is for sectional title complexes and gated estates to install their own, private power plants that are capable of permanentl­y generating enough energy to supply the electrical needs of all the homes in the scheme as well as the common property.

"In most cases these would be solar power plants, and there are already several companies with the expertise to assess the capacity that would be required and then install the right number of photo-voltaic panels (PVs) as well as the batteries, connection­s and control systems that would be needed, and some are also able to offer rent-to-buy options which would suit community housing schemes.”


"Certain banks are now also willing to offer financing to ST schemes and estates for this type of 'green' improvemen­t, and the monthly rentals or repayments for the power plant equipment can easily be divided among the owners in a community scheme according to the same PQ ratios used to calculate levies. What is more, these payments are likely in most cases to be lower than the amounts they are currently paying for municipal electricit­y."

Further advantages are that residents will no longer have to worry about outages, or about their food going off in the fridge, their appliances being damaged by power surges following load shedding, or their buildings not being secure. Showers will also stay hot, and they will always be able to charge their phones and computers, which is especially important to the many people who are now permanentl­y working from home.

"In addition, by installing private power plants that use alternativ­e energy sources such as the sun or wind, community housing schemes will be adding value to the investment­s of all their owners by making their properties more affordable to run and more attractive to tenants as well as potential buyers - who increasing­ly also want to purchase environmen­tally considerat­e properties."

Owners’ approval

But the installati­on of a private power plant is obviously not something that the trustees or directors of a community housing scheme can just decide on their own.

In terms of the Sectional Title Schemes Management Act (STSMA), for example, trustees of the sectional title schemes would need to suggest that owners approve the power plant as a "necessary" improvemen­t to the common property, and give them 30 days to object or call a meeting.

And if there were objections or a meeting were called, a special resolution would then have to be passed before they could proceed.

(This requires a normal meeting quorum and a vote in favour by 75% of those present in both number and value.)

 ?? Photo: www.adaderana.lk ??
Photo: www.adaderana.lk

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