Midvaal municipality plans to replace Eskom with private energy provider

By Charles Molele

Midvaal, one of the few Gauteng municipalities renowned for good governance, is planning to replace Eskom with a private electricity provider through a proposed 20-year public-private partnership.

According to Reginald Hubbard, Midvaal’s mayoral committee member for engineering services, outdated infrastructure and the critical role of electricity revenue in the municipality’s finances were key factors driving the decision.

“Electricity is our biggest source of income,” Hubbard told Rapport on Sunday.

“The municipality will support the successful bidder with grants we receive from the government.”

Interest in the project has come from companies in the United States and China.

According to Midvaal, the objective of turning to a private supplier is to maintain the existing net electricity revenue for the municipality while shifting capital funding risk, revenue risk and technology risk to the PPP company.

The municipality said that the PPP company will have to assume control, possession and