1. www.salga.org.za AMEU Legal and Statutory Committee Meeting SALGA/Eskom Partnering Agreement for Electricity Distribution 12 November 2014

2. www.salga.org.za SALGA/Eskom Engagement Processes Concerted efforts by SALGA to reach a Framework Agreement with Eskom to recognise the constitutional right of municipalities as electricity Service Authorities in their areas of jurisdiction Eskom agreed to entering into a Partnering Agreement – to actively address industry and operational challenges Much negotiation around the Agreement Agreement signed 30 October 2014

3. www.salga.org.za Establishing a cooperative and collaborative working relationship Work towards bringing about the long term sustainability of electricity reticulation Address both industry and specific operational challenges impacting on the delivery of electricity to end users Objectives of the SALGA/Eskom Partnering Agreement

4. www.salga.org.za Immediate issues to be addressed Relationship building and collaboration between Eskom and SALGA Technical Skills Development (through the Eskom College and Leadership Institute) Rescue Plans (for distressed municipalities) Viable & Sustainable EDI

5. www.salga.org.za Medium term issues Eskom participation in IDP processes Provision of Free Basic Electricity Tariff parity Service levels Public & street lighting Municipal takeovers Emergency response protocols Reporting requirements in terms of the Regulatory Framework Credit control and debt management Data sharing and access to information Planning & infrastructure Issues Governance & financial viability issues IGR matters Policy & regulatory matters

6. www.salga.org.za Operationalisation of the Partnering Agreement Establishment of a Working Group (with clear Terms of Reference) to formulate work-plans to address industry challenges Establishment of a Programme Management Office (PMO) of SALGA and Eskom officials to operationalize work-plans SALGA will be the first point of contact in event of planned municipal electricity supply disconnections so that problems are tackled proactively (before being referred to other spheres of government or being officially publicised) PMO to play active role to encourage Metros and secondary cities that are doing well to support struggling municipalities (peer support ) and intensify Adopt-a-municipality Programme

7. www.salga.org.za Taking partnership forward Municipal debts on bulk electricity accounts will be tackled proactively to address pertinent challenges and recommend remedial actions Working group will facilitate collaboration between key stakeholders (AMEU, CoGTA, DOE, DPE, NT, Eskom and SALGA) on debts owed by and to municipalities to identify support / hands on management / interventions required Debts on bulk electricity accounts will be a standing item on: –SALGA/CoGTA Joint Executive Committees (JEXCO) and –the Municipal Managers Forum

8. www.salga.org.za How the SALGA/Eskom Partnership seeks to resolve industry challenges (Cont…) Work will commence to start tackling the following: a.Technical Skills Development – identify relevant municipal staff to participate in training programmes of the Eskom College and Leadership Institute b.Participation of Eskom in IDP processes with a view to align future electricity master plans c.Rescue Plans for distressed municipalities d.Any other immediate issues identified by municipalities We need to identify appropriate people to serve on the working groups and would like AMEU assistance with this

9. www.salga.org.za THANK YOU In view of the upcoming 2016 LG elections, the operationalisation of the SALGA/Eskom Partnering Agreement on Electricity Distribution will be prioritised as a matter of urgency – with dedicated resources from SALGA