Merafong owes Eskom more than R800 million
The Merafong City Local Municipal Council approved yet another payment plan agreement with the national energy provider last week.
The council heard that the municipality owes major creditors a total of R1,103,805,040, of which they owe Eskom R811,887,031. Because of this debt, Merafong has had “multiple engagements” with the national electricity provider over the payment arrangements for Merafong’s account. These engagements take place every Friday.
The new arrangement was necessary because the municipality defaulted on its payments to Eskom in July and August 2021.
Since the municipality did not honour its previous arrangement with Eskom, there is currently no legal payment arrangement between Merafong and Eskom. The last arrangement was made on 28 October 2020, but the municipality did not adhere to it.
According to the municipality, it has seen a sharp decline in revenue collection since 2019. It says the proclamation of the State of Disaster due to the Covid-19 pandemic, followed by the national lockdown, also negatively impacted its repayment to Eskom.
The municipality will now submit a revised proposal for a 72-month payment arrangement to Eskom and the Provincial Treasury.
Weekly meetings will take place to monitor the municipality’s commitment to the plan, should it be approved.
Without a new agreement on the repayment, there is a significant risk that the Equitable Share, an uncon- ditional grant from the National Government, may not be released and that Eskom can proceed with the legal process to cut off Merafong’s electricity supply.
