More municipalities reach deals with Eskom

Published Jan 16, 2017

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Johannesburg - Three more municipalities, two in the Free State and one in the North West, have avoided power supply cuts after they reached payment agreements with Eskom, the power utility said on Monday. The three municipalities are Dihlabeng and Masilonyana in the Free State and Mamusa in the North West. 

"We have always emphasised the fact that electricity interruptions are the last resort available to us, which we have taken agonisingly. We are immensely encouraged by the kind of response we are witnessing presently," Eskom acting chief executive Matshela Koko said in a statement.

"Time has come for the outstanding overdue debt to be honoured in full. Eskom is bent on ensuring that this happens for the sole benefit of, not only Eskom, but the entire South African economy."

Eskom would be monitoring adherence to the payment plans, said Koko. 

Read also:  Eskom suspends power cuts to five municipalities

On Sunday, Eskom announced that Nketoana, Nala, Tokologo, and Mantsopa municipalities in the Free State Province and Walter Sisulu municipality in the Eastern Cape had agreed to payment plans and had settled part of their debt.

Municipalities in the Free State, North West, Northern Cape, Eastern Cape and Mpumalanga owed the power utility billions of rands in unpaid electricity bills.

Efforts by civil organisation Afriforum to interdict Eskom's plans to cut power supply to the owing municipalities failed in the high court last week. Afriforum argued that the decision to cut electricity supply to municipalities would have a negative impact on businesses and residents, who would end up paying for the municipalities’ failures.

Eskom had told Judge Hans Fabricius that it was entitled legally to cut power supply, arguing that it had been trying since 2011 to have the municipalities settle their arrears. The Afriforum application was thrown out with costs.

AFRICAN NEWS AGENCY

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