Civil society organisation the Organisation Undoing Tax Abuse (Outa) believes recent threats by State-owned utility Eskom and certain municipalities to fine or disconnect the electricity supply of users for failing to register their small-scale embedded generation (SSEG) systems, typically solar PV systems, are impractical, irrational and unfair.

It has received a surge of queries and concerns from the public following threatening communications from Eskom and certain municipalities, including the City of Johannesburg, in which they demanded registration or prior approval for SSEG installations under 100 kW, and which do not feed electricity back into the grid.

This has created uncertainty, confusion and anxiety for households, installation companies and other industry stakeholders, Outa says.

Outa's position is that, if homeowners install energy systems behind the meters on their own properties to reduce reliance on an unstable and expensive electricity supplier then, provided the installation is safe, compliant in terms of legislation and the customer continues to pay for electricity in line with their contract with the distributor, there is no reason for the supplier to require that these systems be registered, says Outa CEO Wayne Duvenage.

“If your solar installation has a valid certificate of compliance, which addresses the safety concerns that are often cited by Eskom and municipalities, then you are doing what is required of you,” he says.

At stake here are the rights of citizens who have used their own funds to install energy systems to protect themselves against escalating electricity prices and unreliable power supply, he adds.

“People have installed gas appliances, solar power systems, generators, batteries and other alternatives in direct response to Eskom and government’s calls, and incentives, to reduce electricity demand,” he points out.

Further, the uncertainty has knock-on effects and is leading to solar installation projects being delayed, as some solar installation financiers, insurers and installers are unsure how to proceed.

These registration developments echo the irrationality and administrative challenges observed during the e-toll debacle, he avers.

Processes and administrative functions cannot be introduced through threats and onerous regulations or new laws. Practicality, rationality and public acceptance are the most important ingredients for successful implementation, he says.

Outa adds that there are clear indications that these plans lack public acceptance and feasible application.

It adds that there may be significant legal stumbling blocks for Eskom and municipalities to threaten disconnections or fines for non-registration of SSEG systems. Its legal team is reviewing these issues.

Further, Outa is of the view that recent intimidating letters sent to consumers and public announcements by Eskom and some municipalities regarding the need to register and/or obtain permission for solar system installations amount to coercive tactics designed to create fear and to force unwarranted compliance requirements.

While Outa reports a softer tone recently from Eskom on its stance in terms of disconnections and fines, it views these actions as an unlawful and unreasonable administrative overreach.

“We will continue engaging with various stakeholders to ensure that rationality prevails and to protect electricity users,“ says Duvenage.