Eskom set to cut off indebted municipalities

Johannesburg – Eskom on Wednesday served notice of its intention to suspend electricity supply on 30 March to eight Free State municipalities due to the continued non-payment by these municipalities of their bulk electricity accounts.

Eskom also announced last week that it would disconnect electricity supply to five municipalities in the Northern Cape for defaulting on payment plans.

In the Free State, Democratic Alliance MP in the provincial legislature James Letuka, on Wednesday said Eskom was demanding more than R800 million or else the municipalities would be plunged into darkness.

The collective total amount in payments demanded by Eskom from Free State municipalities was just over R842 million. The highest defaulter among these municipalities owed more than R450 million, while the lowest one was just above R7 million.

Last year, Eskom issued the first threat to cut off these municipalities’ power supply after it was revealed that they were almost R2 billion in debt for bulk electricity supply.

Eskom then started sending out notices to towns in April, informing communities that it planned on implementing extra load shedding or cutting electricity supply from 5 June 2015.

In a statement on Wednesday, Letuka said the provincial government and municipalities had been unsuccessful in adhering to payment plans which were arranged last year, or to find an amicable solution with Eskom.

“Despite the assurances by COGTA MEC Olly Mlamleli and Finance MEC Elzabe Rockman and their participation on an inter-governmental task team formulated last year to negotiate payment plans for municipalities in arrears with Eskom, the province continues to find itself under threat to have electricity supply suspended to hundreds of thousands of people,” Letuka said.

Eskom’s spokesperson Khulu Phasiwe was not available for comment on Wednesday as his phone rang unanswered.

The municipalities and their corresponding outstanding debts to Eskom are:

1. Nketoana Local Municipality – R73,6 million

2. Masilonyana Local Municipality – R20,2 million

3. Tokologo Local Municipality – R7,7 million

4. Mantsopa Local Municipality – R58,3 million

5. Ngwathe Local Municipality – R472,377 million

6. Dihlabeng Local Municipality – R57,8 million

7. Nala Local Municipality – R114 million

8. Phumelela Local Municipality – R38,7 million

Meanwhile, the National Energy Regulator of South Africa is currently holding public hearings into Eskom’s application for it to authorise tariff hikes so that Eskom can recoup R22,8 billion in overspend and unearned revenue from customers this year.

African News Agency

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