LEPELLE-NKUMPI TAKES CHARGE: MAYOR MOLALA MEETS WITH NERSA TO SECURE DISTRIBUTION AND TRADING ELECTRICITY LICENSES
In a move set to redefine the energy landscape of the Lepelle-Nkumpi Local Municipality, Mayor Cllr Dr. Meriam Molala joined by Technical Services, Chairperson, Cllr. Mamashele Makgahlele and the Acting Municipal Manager Dr. Minky Chauke convened a high-stakes meeting with the representatives from National Energy Regulator of South Africa (NERSA), Department of Electricity and Energy (DEE) and ESKOM.
The primary objective is fast-tracking the municipality's application for a formal license to operate electricity distribution and trading services. For years, the municipality has navigated the complexities of shared energy jurisdiction. Mayor Molala's administration has now made it clear that "energy licence" is a cornerstone of their 2025/2026 Integrated Development Plan (IDP).
By securing a Distribution and Trading License, Lepelle-Nkumpi aims to boost revenue collection, which will give direct control over electricity billing and trading will allow the municipality to stabilise its cash flow and reinvest in local infrastructure. Improve service reliability with localised management allows for quicker response times to outages and more direct oversight of maintenance and upgrades.
During the discussions, Mayor Molala highlighted that the municipality is currently at a critical junction of economic transformation. "Our vision for a prosperous, resilient, and green future depends on our ability to manage our own energy resources," the Mayor stated. The application to NERSA is not just a regulatory formality; it is a prerequisite for the "Business Area (BA) development, "which the Mayor describes as the "engine room" of the town's future economy.
The process is now moving into the technical phase. The municipality has appointed an expert consultancy firm to ensure the application meets NERSA's stringent regulatory framework, which includes:
- Financial Modelling: Demonstrating the municipality's ability to fund operations and maintain a "cash-backed surplus."
- Infrastructure Audit: Detailing the current state of the grid and the technical capacity to handle distribution.
- Community Engagement: Ensuring that the transition benefits indigent communities through the continued provision of free basic services.
"We must never forget that our mandate is to improve the lives of our people. We can only achieve our goals by working hard and through proper financial management," said Mayor Molala.
While the licensing process can take more months or more for full approval, the municipality's proactive stance signals a shift toward self-sufficiency. For residents of Lepelle-Nkumpi, this move promises more transparent billing, improved electrical infrastructure, and a municipality that is better equipped to attract long-term investment.
"Motho ke motho ka batho"