Addressing a closed meeting on Tuesday afternoon, CoGTA (Department of Cooperative Governance and Traditional Affairs) representatives assured invited guests power supply to Newcastle would not be turned off, due to non-payment of the municipality’s Eskom debt.
While the Newcastle Advertiser was prevented from attending the meeting, businessmen who attended indicated while it was clear CoGTA was trying to intervene, negotiations with Eskom were yet to be finalised.
SW Scott of the Newcastle Business Forum (NBF) stated the organisation had proceeded with its request that Nersa (National Energy Regulator) revoke the municipality’s licence to supply electricity, thereby allowing Eskom to supply the town directly.
“The talks that took place at the meeting on Tuesday were very positive and we believe the Mayor has good intentions for the town. However, we are not satisfied with intentions; we will only be satisfied with action. We are only prepared to stop the action we initiated once we are convinced of a positive outcome for the town,” said Scott.
“Our experience of the Mayor during the meeting was good. He seems to be the type of person who listens. He is not dodging the issues and is open about what is wrong, but he has a heavy task and doesn’t seem to have everyone’s support. We are prepared to engage with him and to support him, but we will also be watching to ensure what we agree upon is actually put into action.”
By Monday afternoon, the municipality still hadn’t paid its August account to Eskom, and a revised payment plan is yet to be submitted.
Mayor, Dr Ntuthuko Mahlaba said the municipality was negotiating with Eskom to pay the existing debt over a longer period, so the monthly instalment would be more affordable, and that the municipality would reduce the amount of electricity it purchased by about 25MW, thereby saving R4-million a year.
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With just more than a week to go before Eskom is scheduled to implement power interruption, CoGTA is yet to be satisfied the municipality has put in place sufficient cost cutting measures to afford to pay Eskom.
KZN Treasury remained mum on whether its found the payment plan feasible, and Council was yet to convene to take a resolution on the revised payment plan.
While officials have boasted that Eskom has tried to switch off power to the Mpofana Municipality due to its R123-million in debt and failed, the Estcourt and Midlands News reported on July 9 that Mooi River was not out of the dark yet.
Official sources confirmed Eskom did carry out its threat to switch off power to Mooi River, and CoGTA obtained a high court interdict to have the power remain on after residents threatened mass protests.
Eskom and CoGTA will present their cases in court on November 8, before a final decision is taken.
In the meantime, residents have until September 25 to make submissions to Eskom, providing reasons why power should not be cut.
For an easy way to make a submission, fill in the submission form here>>>Objections to Eskom’s blackout in Newcastle made easy
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