Eskom suspends power cuts to five municipalities

Eskom's coal-burning power station at Sasolburg in the Free State. The power utility is owed billions of rand by municipalities.

Eskom's coal-burning power station at Sasolburg in the Free State. The power utility is owed billions of rand by municipalities.

Published Jan 16, 2017

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Johannesburg -  Eskom said on Monday it was suspending planned power cuts to five defaulting municipalities after receiving payments and agreeing on payment plans with them, but the power utility warned it still planned to take action against defaulters. The five municipalities that Eskom has been given a reprieve include; Nketoana, Nala, Tokologo, and Mantsopa in the Free State, and Walter Sisulu Municipality in the Eastern Cape.

These five local authorities were among 17 municipalities in the Free State, North West, Mpumalanga and Northern Cape that Eskom has announced will have their power supply interrupted from Monday because they have outstanding bills.

Eskom said it would continue with the supply interruptions of electricity to the municipalities of Dihlabeng and Masilonyana in the Free State; Ubuntu and Renosterberg in Northern Cape; Ventersdorp, Mamusa, Naledi, Lekwa-Teemane, Maquassi, Madibeng, and Kgetleng Rivier. 

Debt

The others are eMalahleni, Mkhondo, Mbombela, Lekwa, Msukaligwa, and Chief Albert Luthuli municipalities in Mpumalanga.

 Municipalities owe Eskom as much as R10.2 billion, which has increased in the past eight months from R6 billion.

Eskom said in the last five years, the overdue debt had increased tenfold, with the March 2017 forecast being in excess of R12 billion.

Read also:  Eskom will cut power to municipalities

Earlier this month, the North Gauteng High Court in Pretoria dismissed AfriForum and AfriBusiness' urgent interdict to stop Eskom from cutting electricity to municipalities that had outstanding bills, arguing that it was "unconstitutional" and would affect ordinary citizens and businesses alike.

Eskom said it had opted for a "softer approach" of interrupting electricity between 6am to 8am and 5pm to 7:30pm on Monday to Friday, and 8:30am to 11am and 3pm to 5:30pm Saturday and Sunday.

"Eskom will be monitoring the strict adherence to the payment plans and the payment of current accounts of these municipalities and any defaults will result in the interruption of supply without further notice," Eskom said in a statement.

"The interruption of supply as a result of non-payment remains an agonising decision for Eskom, we take solace in the fact that we spared no effort to collect outstanding debts amicably."

Eskom further said municipalities needed to make a cash payment, or make a written undertaking in the form of a Council Resolution that current accounts will be honoured going forward, or make a payment plan for the arrears supported by a Council Resolution, in order for them to avoid supply interruptions. 

 "Municipal customers are encouraged to engage with their supply authorities to get updated information on their municipalities' arrears situation," Eskom said. 

AFRICAN NEWS AGENCY

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