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SA Local Government Association (Salga) CEO Sithole Mbanga says funding models for municipalities must be reevaluated as the revenue that municipalities can raise from the sale of electricity continues to trend downward.
Mbanga was speaking at a knowledge session on virtual wheeling, hosted by Vodacom on 6 October.
He highlighted the potential impact that virtual wheeling – a system of electricity supply where a buyer or offtaker of electricity contracts with or buys power from more than one independent power producer – could have on municipal revenues.
