Nersa approved the licence for Joe Morolong Local Municipality to distribute electricity to Hotazel Township in the Northern Cape. File image: Independent Media
Johannesburg – The National Energy Regulator of South Africa (Nersa) on Wednesday approved the licence for Joe Morolong Local Municipality to distribute electricity to Hotazel Township, in the Northern Cape, effective as of 30 March 2017.

Hotazel Township is a mine town situated near Kuruman, within Joe Morolong Local Municipality's jurisdiction.

The township was built in the 1980s and consists of 696 erven, electrified and supplied by Samancor Manganese, a 60/40 joint-venture between South32 and Anglo American Plc.

The township was developed and electrified for employees in the early years of the commencement of the Samancor Manganese mine's operations.

The township is currently being supplied by Samancor Manganese which does not have an electricity distribution licence.

The ceding of electricity supply to Joe Morolong Local Municipality is due to Samancor Manganese relinquishing its non-core business.

This follows the signing of a Memorandum of Understanding (MOU) between Samancor Manganese and Joe Morolong Local Municipality on the ceding of electricity supply at Hotazel Township.

Nersa said Eskom supported the application by the municipality to supply the electricity in Hotazel Township and has agreed to sign and change the bulk account from Samancor Manganese to Joe Morolong Local Municipality.

"There were no objections received by Nersa after Joe Morolong Local Municipality advertised its application, nor after Nersa published notices for public hearing," the energy regulator said.