The Lesedi Local Municipality (LLM) has failed to honour its August 2022 Eskom account, which was due and payable on 28 September, resulting in the overall municipal debt escalating to R112m.
Eskom has said in a statement released on October 10 that this includes the R86m arrear amount.
The compounding debt emanates from the zero and short payments since June 2022, when the local authority short-paid its account of R58m, made up of current and arrear amounts from the preceding months.
The LLM made another short payment of R21m on July 15.
For July, Lesedi was billed R72m, payable and due on August 26.
The municipality failed again to honour its obligation and no payment was made towards the July 2022 account.
On August 29, Eskom billed the municipality R116m inclusive of the June arrear amount and the full July account, with Lesedi Municipality paying only R30m by September 14.
A bill of R112m, including the R86m arrears from the August account, was issued to Lesedi on September 30 and is due and payable on October 31.
Eskom is concerned about the recent payment patterns by the municipality, as this is contrary to its previous impeccable payment record. The power utility had several engagements with the Lesedi management team to get the municipality to service its account, without much success.
Eskom is complying with the Electricity Supply Agreement (ESA) signed by both parties as it continues to supply the local government with the required electricity to meet its obligations to its customers.
Lesedi has failed to meet its end of the agreement in breach of the ESA, making it very difficult for Eskom to continue with its supply mandate.
HERAUT has requested comment from the LLM.
