The Coastal

Sign in
THE COASTAL

Severe weather

KwaZulu-Natal · Orange Level 6 · Disruptive rain resulting in flooding of roads and settlements (formal and informal), danger to life (fast flowing streams/ deep water), displacement of affected communities, loss of livelihood and l…KwaZulu-Natal · Orange Level 6 · Disruptive rain resulting in flooding of roads and settlements (formal and informal), danger to life (fast flowing streams/ deep water), displacement of affected communities, loss of livelihood and l…KwaZulu-Natal · Orange Level 6 · Disruptive rain resulting in flooding of roads and settlements (formal and informal), danger to life (fast flowing streams/ deep water), displacement of affected communities, loss of livelihood and l…KwaZulu-Natal · Orange Level 6 · Disruptive rain resulting in flooding of roads and settlements (formal and informal), danger to life (fast flowing streams/ deep water), displacement of affected communities, loss of livelihood and l…KwaZulu-Natal · Orange Level 6 · Disruptive rain resulting in flooding of roads and settlements (formal and informal), danger to life (fast flowing streams/ deep water), displacement of affected communities, loss of livelihood and l…KwaZulu-Natal · Orange Level 6 · Disruptive rain resulting in flooding of roads and settlements (formal and informal), danger to life (fast flowing streams/ deep water), displacement of affected communities, loss of livelihood and l…
Council

R313m Power Hole: King Sabata Dalindyebo Points Finger at Smart-Meter Provider

By The Coastal Reporter

10 September 2026 · 2 min read

This article was created using or in collaboration with AI. It was then reviewed, fact-checked and edited by a real human. Lastly, it was approved and published by a senior editor.

R313m Power Hole: King Sabata Dalindyebo Points Finger at Smart-Meter Provider

Municipality says missing information from a smart-meter service provider has distorted its electricity figures, as rising debt strains its ability to pay Eskom.

Electricity sales in Mthatha and its surrounds came in R313, million below budget in the year that ended on June 30, with the King Sabata Dalindyebo Municipality claming missing data from a smart-meter service provider for the shortfall.

This issue was reported in the same report submitted and discussed at a recent council meeting, which also shows the Mthatha-based municipality is carrying R97 million in electricity debt, adding pressure on its payments to Eskom and raising fresh concerns about its financial stability.

The KSD is one of the Eastern Cape’s key rural municipalities, responsible for service delivery in Mthatha and surrounding towns and villages. Electricity revenue is central to its cash flow, helping the council to fund its day-to-day operations and bulk power costs. Any gap in billing data can affect collections, budgeting and the accuracy of its financial reporting.

In its fourth-quarter report for the period that ended 30 June, the municipality says electricity sales came in at exactly R313.464 million, or 37%, below budget. It links the variance to outstanding information from its unnamed smart-meter service provider. Officials have however assured councillors that their attorneys were already preparing a letter of demand against the company.

The report does not say what specific information is missing or when it will be received. It also does not say how much prepaid electricity revenue may be affected.

The municipality says the R97 million electricity debt includes R22 million older than 90 days and R7 million in penalties. It says the arrears are directly affecting its ability to service debt to Eskom.

The report also points to wider financial strain, with property rates debt at R485 million, refuse debt at R336 million and rental debt at R207 million.

On the positive side, the municipality says it has made progress in collecting prior-year debts, with receipts on current year billing and older debts recorded at 105% for 2025/26.

The Coastal could not reach the municipality and could not contact the smart-meter service provider as the council report does not name the company.

Share

You may also like