Eskom rejects R10 million offer

A proposed R10 million down payment by Msukaligwa Local Municipality to Eskom has been declined by the power utility company.

Last week, Eskom demanded a R50 million down payment to avert the impending interruption which was planned for 23 January, while the municipality could only pledge R10 million at the time.

The Minister of Public Enterprises Ms Lynne Brown last week requested Eskom to grant municipalities until the end of January to settle their arrears amounts, a request the power utility granted.

In an exclusive interview with the Municipal Manager Mr Zwelihle Sabatha Shongwe, he confirmed to the Highvelder that Eskom had indeed rejected their initial R10 million offer.

He did, however, explain that the municipality was still in negotiations with the power utility, as they had recently received a letter from Eskom on how they view the proposed repayment plan.

When the municipality signed the payment arrangement, the debt was R112 million and the municipality managed to reduce it to R76 million, but it has now escalated to R139 million.

Mr Shongwe conceded that Council had to go flat out to collect outstanding monies without fear or favour. He also expressed his regret that this situation had the potential to affect honest and loyal consumers that pay for their services.

When asked by how much the municipality could increase their offer to Eskom, Mr Shongwe said their view was that any offer should not cripple the municipality.

“The offer we’re making to the power utility company is an offer that will ensure we keep up to the payment arrangement and also keep the municipality sustainable,” explained Mr Shongwe.

Msukaligwa Local Municipality’s Communications Unit released a statement explaining that, apart from the balance owed to Eskom with interest, the current account is up to date.

Msukaligwa consumers owe the municipality a staggering R443 million for electricity, water, property rates and refuse removal.

The municipality has decided, among others, to intensify cut-offs to all defaulters and/or refer all accounts outstanding for 120 days and longer to debt collectors or municipal attorneys, register all defaulters with the credit bureau, which will adversely affect their credit rating, and as part of the long-term solution the municipality will begin public participation about the installation of the integrated electricity smart metering system, which will commence soon.

The Municipal Manager encouraged whistle-blowers and people with information to come forward with that information that would lead to the conviction of those stealing electricity and reminded the public that there was a reward available.

Mr Shongwe also commended the involvement of the provincial government in trying to assist in resolving the matter and the support from the South African Local Government Association (Salga) and the MEC for Cogta in coming on board in resolving the matter.

Mr Shongwe pleaded with the community to cooperate and to pay for their services.

He concluded by saying that they remained positive that something would result from the next meeting with Eskom during this week.