MunicipalNews

Msukaligwa Municipality’s debt to Eskom at R172-million as of 12 June

He concluded by extending an unconditional apology to the affected communities for the prolong water interruptions and electricity outages.

It’s been a tough winter thus far for residents of Ermelo and surrounds, but particularly those supplied electricity through the 11KV-substation.

However, the past week has seen some easing in municipal load reductions, but unfortunately odd unplanned outages are still a reality.

Mr Mandla Zwane, spokesman for the Msukaligwa recently indicated their financial position relating to the municipality’s debt owed to Eskom.

As for how much the municipality owes, he stated the municipality has many accounts with Eskom for different supply points and the amounts owed are not the same.
The Highvelder requested that these amounts be disclosed and were furnished with the details in a follow-up email.
The municipality’s current overall debt to Eskom is about R172-million with an installment of R11-million per month.
There are five accounts that the municipality has with Eskom.
As of 12 June the amounts were as follow (figures have been rounded-off):
  • Ermelo, outstanding debt: R169-million, last installment paid – R3-million
  • Davel, outstanding debt: R1-million, last installment paid – R350 000
  • Breyten, outstanding debt: R2-million, last installment paid – almost R2-million
  • Kwazanele, outstanding debt: R5-million, last installment paid – R90 000
  • Lothair, outstanding debt: R570 000, last installment paid – R570 00

The request for the interest on these figures were not supplied as requested, but Mr Zwane indicated they will pass on the information in due course as they were busy with the closing of their

financial year and he did not have it at his disposal at the time.
He also responded to the question of why residents are not immediately cut-off if they default on their payments. He said: “Residential properties that are in arrears for 30 days and or longer, who use conventional meters (postpaid) are being disconnected monthly.”
In regard to residential properties that are on prepaid meters, he said a 75% to 25% purchase policy is applied to those whose accounts are in arrears, thus, 75% is used for the outstanding balance.
“Electricity cut-offs are our main tool in terms of revenue collection, therefore the municipality does not have measures to enforce payment especially in areas such as Chrissiesmeer that are serviced by Eskom,” he said.
He was also asked how effective the municipality was in collecting debt and how often accounts were handed over to municipal debt collectors seeing that their debt to Eskom is so high.
Mr Zwane said: “Strict cut-off processes are implemented and managed properly, including the follow up cut-offs.
“The outstanding debt that is 90 days and older is handed over to the municipal debt collectors for collection.”
According to him, if an illegal connection is found on the property, it is treated as an unauthorized connection.
“Council will terminate the electricity supply, remove the illegal connection and the circuit breakers.
“Penalty charges are levied against the debtor or the defaulter as per approved council’s tariffs, and must be paid before the restoration of the power supply.”
He concluded by extending an unconditional apology to the affected communities for the prolong water interruptions and electricity outages.

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