It has come to light that the struggling Ventersdorp municipality, which is on the verge of amalgamating with Tlokwe Municipality, owes Eskom a total of R49 478 509.26.
In the notice of termination of bulk electricity supply sent to Ventersdorp’s administrator, Mr Michael Mokgwamme, the general manager of the power utility’s operating unit in NW informed the municipality that it is in arrears and that the electricity supply would be terminated for non-payment.
The affected areas are Ventersdorp town, Tshing location, Boikhutsong village, Boikhutso village and Appeldraai village.
Ventersdorp’s municipal manager, Isaac Moruti, says the crisis arose from accumulated debt since 2012 and the outstanding balance brought forward is, therefore, difficult for the municipality to pay off. “The municipality entered into a repayment plan with Eskom in July 2015, comprising the payment of the estimated current account and payment of the outstanding balance,” he said. “The municipality’s second last payment of R2 639 186.77 was made on 8 December 2015, as per the agreement plan for the ring-fenced outstanding balance. The other payment of R3 883 271.91 was paid on 15 January 2016. The municipality did not pay the monthly accounts for November and December, however. The default from the repayment plan resulted from funds being withheld by National Treasury. A portion of the funds that were withheld could help to augment the payment of the monthly account on a spread, in line with the agreement,” he explained.
When asked how the municipality plans to address this crisis to avoid termination of electricity, Moruti said management has started disconnecting the services to consumers that are in arrears of more than 90 days.
The other solution was the installation of prepaid electricity meters to all consumers.
Moruti assured that the illegal connections are being addressed and penalties for the defaulters have been set at R1 900 for bridging of electricity.
The data cleansing of consumer accounts will be addressed in the process of installing prepaid meters when the municipality will be in a position to bill the correct consumers.
Furthermore, Moruti says that, from Monday, 15 February, the mayor will be informing the communities via radio stations about the installation of prepaid electricity meters.
“The mayor will be encouraging communities to pay for their services to avoid disconnections.
In due course, Ventersdorp municipality will officially merge with Tlokwe municipality. Moruti says the municipality should have paid off the outstanding balances before amalgamation. The installation of the prepaid meters, which will take effect from 1 March, will start addressing the Eskom account efficiently.
Tlokwe municipality’s spokesperson, Mr William Maphosa confirmed that the two municipalities would merge, but said the notice is directed at Ventersdorp and not the newly amalgamated municipality.
“As to what will happen to the electricity bill post-amalgamation, the technical and political change management committees are still grappling with these, and other amalgamation issues,” he said
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