Eskom enters into payment agreements with municipalities

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On 10 April 2015, Eskom announced that it had moved to notify all parties who are likely to be affected, as the company contemplates interrupting bulk electricity supply to the top 20 defaulting municipalities across the country with effect from 5 June 2015.

"At the time the total municipal arrear debt greater than 30 days was R4.67bn. Of this amount, the top 20 defaulting municipalities owed Eskom about R3.68bn for the bulk supply of electricity. Since the announcement, the total municipal arrear debt has been reduced by R54m," said the utility on Wednesday, 29 April.

The total 10 municipalities that have entered into payment agreements with Eskom are:

• Nama Khoi Municipality in Northern Cape
  
• Nketoana Municipality in Free State
  
• Nala Municipality in Free State
  
• Dihlabeng Municipality in Free State
  
• Thabazimbi Municipality in Limpopo
  
• City of Matlosana in North West
  
• Naledi Municipality in North West
  
• Madibeng Municipality in North West
  
• Randfontein Municipality in Gauteng
  
• Westonaria Municipality in Gauteng

The utility said that the bulk electricity supplies of municipalities that have entered into a payment agreement with it will not be interrupted. However, municipalities have to comply consistently with payment agreement terms on a monthly basis. If these conditions are not met, interruptions of supply will be implemented without further notice.

"Eskom has reached a point where it can no longer continue to provide power without receiving payment in return. We are pleased that these 10 municipalities are doing their bit to ensure that they reduce the debt owed to Eskom and we encourage all defaulting municipalities to do the same," said Eskom acting Chief Executive Brian Molefe.

Meanwhile, Eskom has also issued public notices of impending power interruptions to defaulting municipalities in Mpumalanga and the Free State Provinces, effective on 5 June 2015.

The affected municipalities are Emalahleni, Govan Mbeki, Lekwa, Msukaligwa, Maluti-a-Phofung, Matjhabeng and Ngwathe.

The utility will implement the power interruptions from 6am to 10am and from 5pm to 9pm Monday to Friday and from 7am to 10am and 5pm to 8pm on Saturday and Sunday.

The utility said it recognises that this will cause undue hardship to members of the public and businesses in the affected areas, and also have an adverse effect on the delivery of other services.

"Eskom assures South Africa that power interruption and/or disconnection are always implemented as a last resort when all other viable options have been explored.

"Eskom is working closely with the relevant national and provincial departments through local, national and War Room structures to manage the municipal financial recovery process and we believe that the work being done within these structures will yield positive results," said Molefe.