Wednesday, March 04, 2015

Electrification Funding Allocations for 2015/16

It is reported that, as at 16 February 2015, `2015/16 Dora allocations (for electrification funding) are not confirmed’ (source: e-mail communication for DoE representative).

Some members will remember an article in the March 2014 edition of this Bulletin in which it was reported that in a number of e-mail messages on 28 February 2014, INEP officials had advised municipalities that `…. there were dramatic changes in the allocations for 2014/15 for INEP Nationally….’ and that it would `…….send new letters (discard the previous letters in this regard) that confirms these alterations….’. DoE had humbly apologised and advised that `We understand the delay, chaos and inconvenience this will be causing…’ but that the changes were the result of the need `……….. to give additional money to Eskom to advance work in other Provinces which still have high backlogs on electricity access.’

These last minute changes resulted in an amount of R460m being taken from the original municipal allocation and transferred to Eskom, reportedly (at that time) from the allocations to municipalities that are not licensed electricity distributors (Eskom is the supply authority in these areas). This is not how the reallocation transpired over the last year unfortunately.

Details of the 2015/16 allocations will be made known as soon as they are available.

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