Eskom: Still no payment plan for Ngwathe

Eskom and the Ngwathe management met on Tuesday morning to discuss the way forward. By Tuesday morning, a payment plan had still not been finalised between the two parties. Ngwathe’s Eskom debt at the end of September amounted to R1,630,722,771.95 billion. Eskom also indicated last week that no payment had been received from Ngwathe for the past three months.

When asked about the way forward, the power supplier said they are now at the end stage of the intergovernmental relations process, which has not yielded any results so far. “If no agreement can be reached with an acceptable payment plan for both parties, the minister will be informed and asked for her intervention. If the process fails, Eskom will have to start the PAJA process to interrupt supply,” Eskom said on Monday.

Gazette earlier reported on Eskom’s engagement in a lengthy process with another Free State municipality, Maluti-a-Phofung, to conclude a partnership agreement with Maluti-a-Phofung, for Eskom to be the direct service provider to consumers in the towns of Harrismith, Kestell, Phuthaditjhaba and QwaQwa.

This followed after Eskom had been fighting for years about non-payment with Maluti-a-Phofung, which ended in court several times. Once the process with Maluti-a-Phofung is completed, Eskom will carry out the power network’s maintenance, operation and revenue collection – and no longer the municipality. An agreement, as was reached between Eskom and Maluti-a-Phofong, can only be done if a municipality agrees to it or through a court order to this effect, Eskom confirmed. The Nersa process also needs to be followed, and if it is as per court order, it may be specific to the order.

The same applies when a third party takes over a municipal power network. A process needs to be followed with the municipality, first giving consent, whereafter the Nersa process will be followed or by means of a court order. Eskom currently does not have a licence to supply in the Ngwathe municipal licence area, and, therefore, customers pay the municipality for their electricity supply.

Ngwathe ‘s payment for October is due before 7 November. If payment is not received, Eskom will continue to raise interest and will not be in a position to optimally provide a technical service to the municipality, the power supplier said on Monday.