Photo by: Bloomberg
State-owned power utility Eskom has suspended its planned interruption of bulk electricity supply to 21 municipalities that have made payments or had signed payment plans for outstanding debt.
The parastatal on Tuesday said encouraging progress was being made in recovering some of the billions of rands owed to it by certain municipalities.
“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 interim CEO Matshela Koko warned on Tuesday.
In January, the State-owned utility started implementing interruptions in power supply to some defaulting municipalities owing to the nonpayment of municipal accounts.
With expectations that the arrears in question will increase from the current R10.2-billion to more than R12-billion by March, Eskom said the “time has come” for the outstanding overdue debt to be honoured in full.
The utility previously outlined that the municipalities, to avoid the supply interruptions, need to make a cash payment as negotiated with each municipality, supply a written undertaking in the form of a Council Resolution that current accounts will be honoured going forward, or deliver a payment plan for the arrears supported by a Council Resolution.
Twenty-one of the 34 identified municipalities scheduled for supply interruptions during January had met these requirements by Tuesday.
However, should any municipalities renege on the agreements, which had occurred with two municipalities on Monday, Eskom will resume the staggered interruptions without further notice.
The utility will continue its planned interruptions in the supply of power to the Naledi municipality, in the North West, between 06:00 and 08:00 and 17:00 and 19:30 from Tuesday, followed by the start of interruptions to various municipalities in both the Northern Cape and North West on January 18 and in Mpumalanga on January 23.
Cooperative Governance and Traditional Affairs Minister Des van Rooyen engaged all municipalities that currently owe Eskom and urged the affected municipalities to honour their agreements.