State-owned power utility Eskom has entered into an active partnership agreement with the Msunduzi municipality, in KwaZulu-Natal, whereby Eskom has been appointed as network maintenance services agent.
Eskom will also assist the municipality with capacity building and skills transfer.
The three-year agreement is the first in a series of active partnership agreements that Eskom intends to enter into to assist municipalities with rebuilding their technical and administration capacities, which will ultimately boost the utility’s revenue collection.
Municipal debt to Eskom stood at more than R35-billion at the end of March.
“Through these active partnership agreements, Eskom acknowledges its role to sustainably supply bulk electricity to the municipalities, and to do everything it can to assist the municipalities to meet their obligations to the people of South Africa.
“Key among these obligations is the requirement by all parties, including the municipal customers, to keep their end of the bargain by paying for services provided and for electricity supplied,” says Eskom distribution group executive Monde Bala.