Energy efficiency and decentralised energy generation could negatively impact municipal revenue

Urban Earth 28 November 2012.

The City of Cape Town could experience total electricity revenue losses of up to 4.5% in the next ten years if energy efficiency measures and distributed renewable energy interventions are implemented at expected rates according to recent research released by Sustainable Energy Africa (SEA).

While the total revenue losses may not sound significant the net revenue losses (after deducting bulk electricity expenses) are predicted to be in the region of 22% says Andrew Janisch a project manager with SEA.  At this level of loss “it is probably not tenable for electricity departments to function” says Janisch.  In addition a portion of electricity revenue in most municipalities is used in the general coffers and these funds “are needed for the entire municipality to function and deliver services to the most needy” explains Janisch…

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