Municipality owes Eskom R89 million

The Mayor has assured residents that Eskom will not switch off lights and that the council will pay the power utility.

Randfontein Local Municipality executive mayor Sylvia Thebenare has slammed rumours that power utility Eskom is threatening to switch off all lights in Randfontein.

This was announced at a council meeting last week Friday the municipality admitted to owing Eskom a whopping R89 million in arrears electricity accounts.

Thebenare has promised that, in accordance with a new payment plan, the arrears on the town’s electricity account will be cleared in a period of seven months.

According to Thebenare, the first payment of R9 million will be made this July.

A further R5 million will be paid in October and the last payments for the year of R35 million will be paid between November and December.

Another R40 million will be paid into Eskom’s account between January and March next year.

According to Thebenare, this will be done with funds received from debt collection as well as funds reserved for debt relief to indigent families.

“To achieve our obligations towards Eskom, we have committed ourselves to implementing an aggressive revenue enhancement programme with immediate effect

“This will allow us to collect enough funds from our debtors to honour our arrears with. .

“In order to have a back-up plan, we have also instructed the Municipal Manager to engage with the council’s bankers to negotiate an overdraft for council of R50 million,” says Thebenare

She adds that this will assist the municipality in honouring its Eskom account should they experience a low collection rate.

Exit mobile version