The mid-year results for the current ‘25/’26 financial year are due to be published soon and
residents should brace themselves for what is bound to be a very unsettling state of affairs,
largely caused by the failure of the KDM Electricity Business Unit to address soaring energy
losses. Despite having reported to Council that a service provider had been appointed to
implement the RT-29 Transversal contract to address energy losses, to date, nothing has
transpired and no other back-billing has taken place to recover any revenue. The losses for
the first quarter are sitting at R140 million, or approximately 30%, which is more than double
the NERSA-recommended non-technical loss tolerance. At this rate, losses could reach
R540 million this year. KDM will have to dip into its dwindling cash reserves to cover these
losses, as budget assumptions for this year were based on the premise that loss mitigation
measures such as RT-29, would already be in place.
There is also a significant underspend for both salaries and the capital budget. Positions that
were budgeted for have remained vacant, which has knock-on effects for service delivery.
We are also deeply concerned by a lack of significant budget allocation for the completion of
the Dukuza substation, which is desperately needed to cater for the rapid development of
our region.
Energy losses remain a top priority for DOCRRA as we move into 2026 and KDM have
committed to having an RT-29 service provider appointed by the end of January, per our
most recent executive meeting. Stay connected to all the latest updates by following us on
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