AGANANG LOCAL MUNICIPALITY Municipal Revenue Collection in Eskom Areas/Rural areas AGANANG LOCAL MUNICIPALITY REVENUE MANAGEMENT SALGA FINANCE WEEK 7-8 February 2013

AGANANG LOCAL MUNICIPALITY Municipal Revenue Collection in Eskom Areas/Rural areas PRESENTATION OUTLINE BACKGROUND BACKGROUND REVENUE SOURCES REVENUE SOURCES ALTERNATIVE REVENUE SOURCES ALTERNATIVE REVENUE SOURCES REVENUE COLLECTION IN ESKOM REVENUE COLLECTION IN ESKOM RECOMMENDATIONS RECOMMENDATIONS

BACKGROUND Aganang municipality is situated in a very rural area where infrastructure was not developed fully and it is without semi urban township or town. Aganang municipality is situated in a very rural area where infrastructure was not developed fully and it is without semi urban township or town.

REVENUE SOURCES Currently the sources of own revenue within the municipality are: Property rates from businesses and government departments only Property rates from businesses and government departments only Traffic fees Traffic fees Rental facilities (municipal halls and market stalls) Rental facilities (municipal halls and market stalls) Interest on investments and debtors Interest on investments and debtors Sundry income Sundry income

Alternative revenue sources Currently Aganang Municipality is considering implementing other revenue streams, such as - Animal pound - Grave digging - Hiring out of sport facilities - Waste collection

Revenue collection from Eskom. Currently Aganang Municipality is not a licensed electricity distributor. The electricity infrastructure that exist currently is developed by both Eskom and the municipality,

Revenue collection from Eskom Cont… Eskom is the sole supplier and distributor of electricity in the municipality including municipal offices. Eskom is the sole supplier and distributor of electricity in the municipality including municipal offices. And as such the municipality neither generate any revenue from electricity or derive any benefit from revenue generated by Eskom in its area of jurisdiction. And as such the municipality neither generate any revenue from electricity or derive any benefit from revenue generated by Eskom in its area of jurisdiction.

Recommendations 1. That the municipality applies to Nersa to acquire license as electricity distributer in its area of jurisdiction. 2. That the municipality negotiate with Eskom for the transfer/takeover of electricity infrastructure. This will assist the municipality to be directly involved in electricity provision to its communities and at the same receiving revenue from the electricity service

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