Municipalities have sounded the alarm over provisions in a draft power bill that will dilute their role in on-selling and distribution of electricity. This would be disastrous for already cash-strapped municipalities that generate most of their revenue from electricity sales.

The majority of South Africans buy their electricity from municipalities that purchase it from Eskom and then resell it to households, businesses and other institution. Data published by Stats SA show that the surplus municipalities earn from this is usually their biggest revenue stream and can account for more than a quarter of total municipal revenue...

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