Eskom partners to ensure financial sustainability

‘When this works, it will be a blueprint for the rest of the country,’ says Thuso Ramaema, deputy director general of the Department of Provincial Planning, Policy, Governance and SIPS.
Municipal debt is often seen as an obstacle standing in the way of partnerships, but Eskom and the Phumelela Municipality are proving that collaboration can still happen, to the benefit of all parties involved.
On Thursday 1 June, Eskom and Phumelela signed a service level agreement that  marked the start of the implementation phase of a revenue recovery project. The purpose of the agreement is to establish a functional relationship between the parties for the purpose of Eskom providing an electricity revenue service to Phumelela.
The aim of this is for the municipality to meet its bulk purchase expense. Revenue management will ensure that the municipality       becomes financially sustainable and that Eskom recovers its revenue. Active partnering initiatives will be identified to ensure an effective exit and handover strategy so that the municipality will be sustainable during, and at the end of, the agreement. In the following week, Eskom will meet with contractors in Warden and Ezenzeleni to make them aware of the upcoming process. In July and August, 2 600 traditional electricity meters in Phumelela will be replaced with split meters, which will result in Phumelela being able to recover their revenue more effectively. ‘When we are done in Phumela, the municipality will be financially sustainable,’ said Eugene Myburgh, the acting customer    relations manager for Eskom in the Free State during the signing session. ‘This offer is not limited to Phumelela. We are open to assisting any municipality that needs our help.’