HomeIndustry SectorsFinance and PolicyInfrastructure investment to be regulated

Infrastructure investment to be regulated

23 November 2007 – Regulations setting out municipal investment, maintenance and rehabilitation spending will be published early next year said Nelisiwe Magubane, minerals and energy deputy director-general.

In an announcement, the South African government has said that municipalities will be compelled to invest a fixed percentage of their electricity revenue in distribution infrastructure. This move is due to a failure by municipalities to invest in maintenance of distribution infrastructure and is likely to be met with stiff opposition by the municipalities.

The lack of infrastructure investment and maintenance is one of the leading causes of power cuts, along with the lack of generation capacity in relation to demand.