Eskom issues fresh threat of disconnection to defaulting municipalities
About half of the country’s munipalities who entered into agreement with Eskom to pay off their electricity arrears are defaulting and will again face the threat of disconnection, the power utility’s chief financial officer told Parliament on Wednesday.
“The current status is that out of 62, 31 are, relatively, paying so we will call the others. So half of the guys who said they would pay are paying,” Anok Singh told a select committee on communications and public enterprises.
Singh said the municipalities’ failure to honour their payment schedules meant that Eskom was at risk of seeing municipal debt rise to R12-billion.
It had been contained at R9-billion after Eskom took a hardline with municipalities and eventually cut off power to four. The remaining 54 agreed to pay.
“Again there will be a threat that the R9-billion will be increased.”
He said Eskom would now proceed with applications under the Promotion of Administrative Justice Act to secure the authority to disconnect the 31 defaulting municipalities. In terms of the act, the utility has to give fair warning and allow those affected to make submissions and put in place preparations to allow essential services to continue.
“Obviously we will go to another PAJA application.”
The bulk of the debt, some R7.6-billion, is owed by municipalities in the Free State, Mpumalanga and North West.
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