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Eskom strikes payment deal with 10 worst defaulting municipalities

Ten of the 20 municipalities which are most most indebted to Eskom have reached an agreement to settle their debt with the national utility. The 10 municipalities cumulatively owe a R3.6 billion in electricity bills, and were all among those which Eskom threatened to cut off supply earlier this month.

According to Eskom R54 million of the R4.6 billion debt owed to it by various municipalities across the country has been paid since it made its demand.

The following ten municipalities will no longer experience interruptions their bulk supply as threatened, and will be paying an undisclosed amount to Eskom on a monthly basis:

  • Nama Khoi Municipality, Northern Cape
  • Nketoana Municipality, Free State
  • Nala Municipality, Free State
  • Dihlabeng Municipality, Free State
  • Thabazimbi Municipality, Limpopo
  • City of Matlosana, North West
  • Naledi Municipality, North West
  • Madibeng Municipality, North West
  • Randfontein Municipality, Gauteng
  • Westonaria Municipality, Gauteng

“Eskom has reached a point where it can no longer continue to provide power without receiving payment in return. We are pleased that these 10 municipalities are doing their bit to ensure that they reduce the debt owed to Eskom and we encourage all defaulting municipalities to do the same,” Eskom interim CEO Brian Molefe said in a statement.

On the other hand, scheduled bulk power cuts in the Emalahleni, Govan Mbeki, Lekwa, Msukaligwa, Maluti-a-Phofung, Matjhabeng and Ngwathe municipalities will kick in as of the 5th June should they not have reached any agreement by then.

Eskom reiterated that it understands that this will cause undue hardship to members of the public, businesses ans service delivery in the affected areas and says that power interruptions and/or disconnections are always implemented as a last resort when all other viable options have been explored.

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