Golden Triangle Chamber of Commerce demands end to R2.3bn Emfuleni/Eskom debt crisis

ELM and Eskom are still after months locked into discussions without a payment plan in sight and this destabilised business efforts to restore the regional Vaal economy hit hard by the Covid-19 lockdown, said Golden Triangle Chamber of Commerce (GTCoC) CEO Klippies Kritzinger this week.

The GTCoC has also demanded greater transparency by Eskom and ELM on how exactly they plan to find an affordable and sustainable solution despite the hugely negative impact on the Vaal economy of Covid-19 lockdown.

ELM municipal manager Lucky Leseane told VaalWeekblad the lockdown had cost ELM R100 million in lost revenue since it began about two months ago and that this factor needed to be fully recognised when assessing the Eskom debt crisis, which erupted before Leseane took office.

Kritzinger was responding to Eskom comments this week that no payment plan was in place despite months of negotiations with ELM – and that the national electricity provider was keeping open all options in dealing with ELM.

Eskom already attached and seized ELM moveable property earlier this year, leading to a total breakdown in administration and service delivery at ELM – a repeat of which would be disastrous for Vaal business and residents.

Now the GTCoC and Kritzinger say both Eskom and ELM need to recognise the urgent necessity of crafting a payment plan both affordable and sustainable in the interests of the Vaal economy, which in the final analysis provided revenue to both ELM and Eskom.

Eskom and ELM needed to take business and the public into their confidence and communicate how the debt crisis would be resolved – ELM especially should also inform stakeholders properly on how it planned to maximise its revenue generation and collection, Kritzinger said.

“The GTCoC, of course, recognises that ELM faces a massive revenue shortfall due to lockdown but also due to self-inflicted revenue stream destruction such as the dismantling of the smart meter programme last year.

“But both Eskom and ELM should also recognise the huge blow Vaal business and residents have taken from lockdown and also act accordingly to find an affordable and sustainable solution as quickly as possible for all stakeholders.

“The Vaal does not have the luxury of time – how ironic is it that the economy is now opening up but the critical issue of electricity security and ELM debt repayment/revenue generation still has not been resolved?” said Kritzinger.

Leseane said this week ELM was in close contact with Eskom and had submitted proposals to Eskom and was awaiting a response. The issue should be seen within the context of national developments to deal with municipalities indebted to Eskom throughout the country and parliamentary plans to find a national solution.