File Image: PICTURE: Siphiwe Sibeko/ Reuters

CAPE TOWN - Power Utility Eskom has announced that the power-cut which would have interrupted the power supply to the Enoch Mgijima Municipality in the Eastern Cape on Thursday, has been suspended after the municipality reached a payment agreement with the power utility. 

Previously, Eskom stated that towns such as Queenstown‚ Tarkastad‚ Hofmeyr‚ Molteno and Sterkstroom would be affected due to the municipality not being able to pay its debt.

However, Both parties have come out with a joint statement to reveal that a payment arrangement had been reached.

“Eskom and the Enoch Mgijima municipality in the Eastern Cape have today reached a payment agreement, a move that means that the power cuts that were scheduled to start tomorrow (3 May 2018) have been suspended”, says Khulu Phasiwe Eskom spokesperson.

“Earlier today, the municipality has made a substantial payment which has drastically reduced the amount owed. Both parties have agreed on a manageable monthly payment plan.” added, Phasiwe.

Fundile Feketshane, spokesperson for the municipality's mayor Sisisi Tolashe said the municipality was hopeful and that it would have settled its debt with Eskom before the start of the new financial year in July.

In other Eskom news, the power utility stated on Monday that it was in talks with the business rescue practitioners for Optimum coal mine but denied reports that it was willing to accept a price hike to ensure continued supply.

The power utility said it was instead mulling a proposal by the business rescue practitioners to halve its monthly coal supply from the mine, which is owned by the Gupta brothers' Tegeta Exploration, to its Hendrina power station to 200 000 tonnes.

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