Municipal Electricity Failure: Not Simply A Local Municipal Problem, But A Structural Economic Risk

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municipal electricity failure not simply a local

Municipal electricity failure: not simply a local municipal problem, but a structural economic risk

by Chris Yelland, EE Business Intelligence, and Paul Vermeulen, Consultant.

Municipal electricity debt has become a macroeconomic and industrial issue because electricity distribution is not a niche municipal service. It is a central artery of the economy. Municipal distributors supply households, malls, office parks, factories, hospitals and public infrastructure. When municipal electricity trading accounts collapse, the effects ripple outward: maintenance is deferred, outages multiply, network losses rise, and investment decisions tilt away from municipal supply areas. The result is a slow degradation of reliability, affordability and competitiveness.

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