In a pioneering move, the Nama-khoi Local Municipality, in collaboration with technology provider Syntell and Christo Nicholls, launched a ground-breaking Smart Electricity Trading Platform on Tuesday, November 7.
Jason Milford, the spokesperson for the municipality, proudly declared the municipality’s status as the first in South Africa to initiate such a power merchandise endeavour, touting its potential to drive the region towards “more affordable and sustainable electricity solutions.”
Christo Nicholls, renowned as the Utility Solutions Research Chair at Stellenbosch University, brings his invaluable expertise and knowledge to the project. His involvement stems from his work in identifying the root causes contributing to the discrepancy between the cost of electricity and the collection of revenue related to service provision.
According to the official municipality statement, the platform will primarily serve commercial and industrial customers equipped with smart technology installations on their premises. This pioneering system empowers these customers to actively manage and control their electricity expenses while providing access to smart credits that lead to discounted electricity rates.
“What makes this platform even more exciting is the offer of two different types of discounts. Customers who generate excess energy and inject it into the municipal network will receive a discount. It encourages and rewards the use of renewable energy. Those who choose to adopt smart technology can also benefit from low tariffs, which is a further incentive for the use of energy-efficient technology.”
Milford underscored the importance of introducing smart meters as a means to monitor customer payments and deter unauthorized tampering for free electricity, a measure intended to bolster the municipality’s financial stability.
This significant announcement follows the recent approval by the National Treasury of Nama-Khoi and Ritchersveld municipalities for the municipal debt relief program that amounts to R210 million and R53 million, respectively.
Earlier this year, Heinri Cloete, the Chief Financial Officer of the Nama-Khoi Local Municipality, voiced concerns during the Mayoral Business Summit 2023. He lamented the lack of community cooperation, which had left the municipality grappling with severe financial consequences amidst the backdrop of a growing economy.
Cloete revealed, “The municipality’s expenditures amount to R559 million, while the revenue stands at R507 million. With dwindling financial resources, we are forced to negotiate with creditors to cover the revenue shortfall, which subsequently increases our debt load, requiring eventual repayment.”
