Battle rages for ‘rates rich’ Hilton

The uMngeni and Msunduzi local municipalities are locked in a bitter battle over the management of electricity supply by Msunduzi in areas that fall under the uMngeni municipality.

The DA-controlled uMngeni has publicly complained about this state of affairs, accusing the ANC-led Msunduzi of encroaching on its territory.

The area in dispute is the “rates rich” Hilton, home to some of the wealthiest residents in the Midlands with homes selling for R10 million or more.

The area falls under the uMngeni Municipality and all its services are provided by uMngeni, while its electricity is supplied by Msunduzi, something uMngeni wants to put a stop to.

This is not the first time the matter has come up. A few years ago it was raised and it sparked a heated response from a then senior official in Msunduzi, who retorted: “They (uMngeni) should take it (supply to Hilton),” adding that supplying the area comes with a lot of challenges.

In a public letter to Msunduzi mayor Mzimkhulu Thebolla, uMngeni mayor Chris Pappas said he wished to address the ongoing issues regarding the provision of electricity services in Hilton.

“Despite our persistent efforts since July 2020, the Msunduzi Local Municipality continues to provide electricity in Hilton without a proper licence from the National Energy Regulator of South Africa (Nersa) and without a formal agreement with the uMngeni Municipality,” said Pappas.

“We have made numerous attempts to formalise an agreement with Msunduzi Municipality, including proposing a Memorandum of Understanding (MOU) to ensure compliance with legislative requirements and to protect the interests of Hilton residents.

“Unfortunately, no formal agreement has been reached, this regardless of an Msunduzi Council Resolution dated January 31, 2024, authorising the municipal manager to sign an MOU with uMngeni Municipality,” said Pappas.

He said the unauthorised service provision raises significant compliance issues and affected their financial reporting to the auditor-general and Treasury.

Speaking on the efforts of resolution, he said they had proposed an MOU to manage the electricity reticulation infrastructure, supply and billing in Hilton effectively.

The most recent meeting was held on July 12, where Msunduzi officials agreed to finalise the MOU by August 2.

“If an agreement is not reached by this date, uMngeni Municipality will pursue an official Intergovernmental Dispute.

“The uMngeni Municipality has already been in communication with CoGTA and Treasury with regards to our intentions and has completed the drafting of the relevant portfolio of evidence and applications.

“The uMngeni Municipality remains committed to ensuring that the residents of Hilton are provided with a stable electricity supply and good quality service delivery,” said Pappas.

A highly placed source with an understanding of this issue said the management of electricity was a lifeline for both municipalities.

“From what I understand, Msunduzi used to supply Hilton and had a licence to do so, but because of the changes of municipal boundaries, at some point Hilton switched to uMngeni and the issue of supply was not addressed.”

Previously, both local authorities were run by the ANC and the issue was not a problem, but when Pappas took over, everything changed, said the source.

“The first thing his administration called for was the drafting of a service level agreement, and that was being worked on. The main gripe for Pappas’s administration is that there is a belief that the residents of Hilton are not being serviced well. There have been instances when they have been without power for extended periods.”

When it comes to revenue, the Hilton residents have between 95 and 100% payment (collection) and if Msunduzi were to lose that revenue stream, it would suffer immensely, said the source.

Mxolisi Mkhize, deputy mayor of Msunduzi, said a meeting had been scheduled with city officials on Tuesday.

The Mercury