DA demands urgent action plan to stop electricity losses and restore financial stability in Tokologo

Issued by Cllr. Hismajesty Maqhubu – DA Councillor Tokologo Local Municipality
03 Jun 2026 in Press Statements

Note to Editors: Please find attached English and Sesotho soundbites by Cllr Hismajesty Maqhubu and Afrikaans soundbite by David Mc Kay MPL.

The Democratic Alliance (DA) will write to the Tokologo Local Municipality and call for a comprehensive action plan to address excessive electricity losses, improve revenue collection, and restore financial stability.

The DA will further advocate for practical electricity reforms, including alternative energy solutions, to reduce the municipality’s growing debt burden and protect residents from ongoing service delivery failures.

In its 2024–2025 annual financial statements, Tokologo Local Municipality reported electricity losses of R12,16 million. This amount, which is more than three times the National Treasury’s acceptable norm of 7% to 10%, represents an astounding 31% of all electricity units distributed during the fiscal year.

Such disproportionate losses are financially reckless and disastrous for a municipality that is already heavily indebted. Since December 2022, Eskom has threatened to disconnect Tokologo due to over R450 million in arrears. Throughout the current administration’s term, the municipality’s electricity account has remained in arrears despite these warnings, exacerbating the situation and undermining public confidence.

This level of electricity loss indicates structural shortcomings in infrastructure management, accountability, and governance. While communities are constantly at risk of power outages and service disruptions, a financially strapped municipality cannot afford to lose resources on this scale. Every rand lost reduces the ability to provide essential services and exacerbates the suffering of locals who already bear the brunt of government indifference.

A Public-Private Partnership (PPP) reform for electricity through solar farms has previously been proposed by the DA. In theory, Tokologo residents require less than 6MW of electricity per month, which can be met by installing three 3MW solar farms, one in each town, to prevent shortages during peak seasons.

This will not only stop the growing Eskom debt but also prevent the Municipality from paying outrageous Eskom prices and develop a workable plan to pay off its overdue debt to the power utility.

We further caution that Tokologo cannot continue to act carelessly with its finances while its citizens continue to suffer, with unemployment, zero economic growth, no investment in infrastructure, and low levels of service delivery due to poor revenue collection.

The only way to rebuild confidence and guarantee that our people’s lights remain on is through transparency, technical reform, and community accountability.