Crisis Summit as Eskom threatens power blockade over R1,7 bn ELM debt
It emerged over the weekend that ELM and Eskom have been locked in secret negotiations for almost two weeks - without warning business or the public - on a threatened bulk power cut-off and blockade from 6 November.
By Craig Kotze
An Emfuleni business crisis summit is on the cards after it emerged over the weekend that ELM and Eskom have been locked in secret negotiations for almost two weeks – without warning business or the public – on a threatened bulk power cut-off and blockade from 6 November.
Many businesses will go under should the Eskom blockade go ahead and organised business has condemned ELM for recklessness and complete lack of transparency and effective communication in dealing with the crisis.
Experts have placed the blame for the Eskom non-payment crisis squarely at the door of Municipal Manager Dithaba Oupa Nkoane and Chief Financial Officer Andile Dyakala due to them not managing revenue programmes effectively.
“An extra R100 million would be available monthly if ELM top management would adopt a consistent approach to metering – now they have destroyed the smart meter revenue stream and almost 8000 other meters in Emfuleni get free electricity,” said one expert informed source.
Business and residents fear any Eskom blockade or even cutting back by Eskom – in addition to “normal” load shedding and blackouts – will be the final straw in undermining the Vaal economy. Both payers and non-payers will be equally hit by such a draconian move.
Mooivaal Media has established Eskom officially informed ELM in a letter dated 17 October that it would start its power cut-off and blockade on 6 November but left the door open for negotiations.
A renewed call for business unity against ELM top management gross negligence and incompetence – as well as complete lack of transparency – has been made by Golden Triangle Chamber of Commerce (GTCoC) CEO Klippies Kritzinger after the shock revelation over the weekend.
But as late as Saturday ELM CFO Andile Dyakala denied that a letter from Eskom – dated October 17 and seemingly leaked from his own office – demanding payment on outstanding ELM debt of R1,7 billion and threatening a power blockade, was genuine.
Eskom on inquiry by Mooivaal Media confirmed on Sunday 27 October the letter was genuine and that negotiations with ELM are still under way. ELM spokesperson Stan Gaba did not respond to requests made on Sunday for comment.
Now the GTCoC and Large Power Users (LPU’s) could be meeting either on Monday or later in the week to discuss a joint response to the Eskom threat and also a High Court order last week reversing ELM’s almost 21% power hikes, Mooivaal Media has learned.
CFO Dyakala’s denial on a civil society Whatsapp Group to the now-confirmed letter created massive confusion and concern in business circles and amongst the public. Additionally, Dyakala worsened his written denial by saying Eskom was also “investigating the authenticity of the letter”. Adopting an aggressive and dismissive tone to a forwarded request for information by Councillor Gerda Senekal (VF plus) – also posted on the WhatsApp group with the letter – Dyakala said:
“Councillor Senekal I do not know how this incorrect letter got to your hands
“It is quite clear that either someone from my office or MM office leaked this letter.
“This is unfortunate.
“Eskom is also investigating the authenticity of this letter as there is a legal matter between Eskom, Cape Gate and ELM.
“Someone is being malicious and [I] will get to the bottom of who is leaking such documents from my office”.
The GTCoC demanded last week that ELM immediately repay businesses and residents the 21% increase in electricity tariffs set aside by the Gauteng High Court last week. This should be done month-end October, said the GTCoC.
