COLLABORATE FOR SUSTAINABLE ENERGY COSTS

Efforts to implement cost reflective electricity tariffs gained momentum as municipalities across KwaZulu Natal convened to explore sustainable pricing models and strengthen financial and operational performance. The two-day Electricity Cost Reflective Tariff Summit, held at the Durban International Convention Centre in March, was hosted by the KZN Department of Cooperative Governance and Traditional Affairs (COGTA) in partnership with eThekwini Municipality’s Municipal Institute of Learning. The summit brought focus to the pressures facing municipalities as rising bulk electricity costs continue to strain systems. These challenges are compounded by ageing and unreliable infrastructure, increasing non technical losses, affordability challenges, and regulatory requirements, all of which threaten the sustainability of electricity delivery across the province.

More than 20 municipalities joined experts from the National Energy Regulator of South Africa, Eskom, and National and Provincial Treasury for practical, solutions-driven discussions aimed at creating fair, sustainable electricity tariff structures. Director of the eThekwini Municipal Academy Professor Mpilo Ngubane said the summit marked a turning point for KwaZulu-Natal’s electricity landscape. “This collective effort opens the door to practical solutions that can stabilise electricity services, strengthen infrastructure, and improve revenue management,” he said.

The engagement paved the way for deeper discussions on tariff modelling, understanding cost drivers, reducing technical and non-technical losses, meeting regulatory expectations, and improving long-term planning. Delegates explored methods, tools, and strategies to support financially stable electricity departments while safeguarding vulnerable households and ensuring essential services remain accessible.

There was an urgent call for stronger collaboration between energy experts, municipalities, and COGTA to reinforce governance, build capacity, and drive a unified approach to stabilising the electricity sector. This partnership is essential to ensuring a more reliable, affordable, and sustainable electricity future for all communities.

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