Honourable Deputy Speaker, the ACDP understands that load reduction, distinct from load shedding, refers to targeted electricity cuts in areas where local networks are overloaded, often due to illegal connections or infrastructure failures. But the reality is that like load shedding, load reduction inhibits economic growth and affects the indigent most severely.
The Minister has outlined his planned intentions to eradicate load reduction within the next few months.
These plans include the roll out of smart meters, refurbishment of aging infrastructure, tackling illegal connections, and reviewing the free basic electricity framework. While these measures are welcome, they must be matched with urgency, accountability, and clear implementation.
The ACDP is pleased that the Minister addressed the excessively high cost of electricity which has risen by some 937% since 2007—far outpacing inflation. This places a severe burden on households and businesses, making electricity unaffordable for most.
Additionally, the ACDP will be calling for amendments to regulations surrounding the Generation Regulation Asset Base (RAB) which allows for Eskom to take an asset which has a book value of one rand and inflate it or increase it to up to R200 billion using the modern equivalent asset value in order to obtain a higher tariff increase which they receive—this further burdening the consumer.
We understand that exogenous factors including Iran’s blockade of vital oil routes will increase input costs and Eskom may be forced to scale back the use of open cycle gas turbines with concomitant symptoms of renewed load shedding and load reduction.
But critically, government must address the inability of many municipalities like we see in the Eastern Cape’s Gqeberha to maintain and upgrade their electricity infrastructure. Aging networks, poor maintenance and financial mismanagement at municipal level are major contributors to load reduction.
The effective implementation of the Distribution Agency Agreement (DAA) with municipalities is essential to ensure proper oversight, technical support and accountability in electricity distribution.
We must learn from the international successes in countries such as Nigeria, India and Brazil where efforts to curb illegal connections only succeed when combined with community engagement.
As Kingdom Builders, the ACDP asserts that South Africans need the assurance that the Minister’s promise to end load reduction are not empty words, but a practical pathway to reliable, affordable electricity for all.
I thank you.
