SALGA annual report 2016/17 SALGA ANNUAL REPORT 201617 PRINTED FINAL | Page 51

Performance information Highlights of performance per goal SALGA’s programmes are implemented through the SALGA directorates and provincial offices. Below are the highlights of performance per goal. • • Support and advice; and Knowledge and information sharing. Highlights of performance Goal 1: Local government delivering equitable and sustainable services SALGA – Eskom engagements This goal addresses policies, processes, operations and capacity that ensures that local government is able to provide a comprehensive range of municipal services to communities in a manner that is accessible, equitable and sustainable. The goal specifically focuses on electricity and energy, water and sanitation, solid waste management, roads and transport, human settlements, environmental management and climate change. The role of SALGA in achieving this goal is an integral role of finding solutions to service delivery challenges that are common to municipalities, mobilising appropriate support from partners, and facilitating knowledge sharing from lessons learned through innovations within municipalities. SALGA also identifies funding and training opportunities to support municipalities on service delivery, and serves as a knowledge hub for municipalities. Furthermore, it undertakes lobbying and advocacy on policy, legislative and fiscal issues to ensure an enabling environment for municipal infrastructure service delivery. The work of the SALGA in this goal is therefore multi-dimensional. It requires an excellent understanding of each of the sectors, as well as an ability to influence and bring about change in policy, legislation, institutional landscape, financial and fiscal set up within the real life context of municipalities on the ground. The activities in goal one addressed the following SALGA mandates: • • Lobby, advocate and represent; Capacity building; 51 SALGA has engaged Eskom on the current key structural and technical issues that have exacerbated municipal debt. In the year 2016/17, SALGA successfully lobbied for changes to some of Eskom’s credit control policies, including the following: • • Reduced prime plus 5% interest on overdue amounts to prime plus 2.5% (we continue to lobby for this to be reduced to prime only); and Increase the Eskom 15 day payment requirement to 30 days, being the same payment period municipalities provide to users of municipal services. SALGA is continuing to engage Eskom on the following to which Eskom has agreed: • • • • Revise some of the unsustainable payment arrangements; Possible waving of the interest if the payment arrangement is complied with; Notified maximum demand; and Determination of the constitutional authority for electricity distribution. In February 2016 the Minister of CoGTA, SALGA President and the NERSA leadership discussed and agreed that SDAs must be entered into between Eskom and municipalities. As a result of this decision, NERSA issued a consultation paper in July 2016 seeking comments and legal views from stakeholders and the public on the constitutional powers of the municipalities in terms of electricity reticulation. SALGA sought legal views and opinions from its members and made a detailed submission to NERSA. Establishment of metro energy forum SALGA established a metro energy forum. The purpose of this forum was to compliment the working group on trading services by discussing, analysing and providing recommendations SALGA ANNUAL REPORT 2016/17