The Organisation Undoing Tax Abuse (OUTA) has rejected recent demands by Eskom and certain municipalities that households register their small-scale solar installations, calling the requirements impractical, irrational and unfair.
The organisation said it has received a surge of queries from the public following threatening communications from Eskom and municipalities, including the City of Johannesburg, demanding registration or prior approval for small-scale embedded generation (SSEG) systems under 100 kW that do not feed electricity back into the grid.
OUTA noted significant amendments to earlier requirements and deadlines by the authorities, which it said is generating uncertainty and ambiguity about their demands.
“What is at stake here are the rights of citizens who have gone to significant personal expense to protect themselves against years of escalating electricity prices and an unreliable power supply,” said OUTA chief executive Wayne Duvenage.
He said people have installed solar power systems, generators, inverters and other alternatives in direct response to Eskom and government calls to reduce electricity demand.
The uncertainty has led to solar installation projects being delayed, with some solar installation financiers, insurers and installers being unsure how to proceed.
OUTA cautioned finance houses and insurers against refusing to fund or insure residential solar installations based on the confusion. The organisation encouraged homeowners to seek alternative providers who are willing to support compliant and safe installations with proof of technical and safety compliance in the form of a valid certificate of compliance (CoC) from a registered and qualified electrician.
What is at stake here are the rights of citizens who have gone to significant personal expense to protect themselves against years of escalating electricity prices and an unreliable power supply.
Duvenage compared the developments to the e-toll debacle, saying government often makes the mistake of believing that processes can be introduced through threats and regulations when practicality, rationality and public acceptance are the most important ingredients for successful implementation.
He said there also appear to be significant legal stumbling blocks which OUTA’s legal counsel is finalising.
“What a homeowner does behind the meter on their own property to reduce reliance on an unstable and expensive electricity supplier is of no real business to the supplier, provided the installation is safe, compliant in terms of national legislation, and the customer continues to pay for electricity in line with their contract with the distributor,” Duvenage said.
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He said if a solar installation has a valid CoC, which addresses safety concerns cited by Eskom and municipalities, homeowners are doing what is required.
In terms of the Occupational Health & Safety Act, the Electrical Installation Regulations, and the mandatory national standard SANS 10142-1, a residential electrical installation, including solar PV, must have a valid CoC issued by a qualified and accredited installation electrician registered with the Department of Labour and Employment before the system is commissioned.
OUTA said the recent letters sent to consumers and public announcements by Eskom and some municipalities amount to coercive tactics designed to create fear and force unwarranted compliance requirements.
The organisation noted a toning down of Eskom’s stance on disconnections and fines in recent media reports, which suggests uncertainty and a realisation that Eskom and municipal plans are not in sync with the powers attributed to them.
OUTA said it will continue engaging with stakeholders to ensure that rationality prevails and to protect electricity users from unlawful and unreasonable administrative overreach.
