Eskom and Emalahleni Local Municipality have reached an in-principle agreement and the electricity will stay on for now.
Local attorney Mr Johan Coetzee, who brought a successful application forward to be joined as an interested and affected party to the municipality’s application to the High Court in an attempt to stop Eskom from interrupting the electricity supply to the city, is not convinced that the municipality is taking steps in the right direction.
He highlighted concerns regarding the repayment agreement.
The premier said the payment arrangements were not sustainable.
The power utility’s agreement with Emalahleni is based on a cession by the municipality to Eskom of R250-million from the proceeds of the sale of a prime piece of land.
Eskom also wanted a payment of R63-million. This is part of the equitable share from the National Treasury.
The municipality has to pay Eskom’s current account in full by the end of March and make payments on their monthly Eskom accounts as it becomes due.
The municipality has also undertaken to pay their total arrears by December 31.
“We requested the municipality to provide us with a copy of the sales agreement in order for us to determine whether the conditions relating to registration and payment of the proceeds are in fact and in law achievable,” said Coetzee.
Coetzee echoed the premier and said the R63-million is earmarked for service delivery in the municipality and not to pay historical debts.
“We have requested the municipality to inform us of their final decision and the legality thereof insofar as they are authorised to deal with the amount received from National Treasury,” Coetzee said.
Coetzee is concerned about the municipality’s ability to pay their current utility bill in two weeks time and the undertaking to pay their outstanding arrears debts by December.
“These payments are dependant on the ability of the municipality to efficiently sell electricity, collect the payments thereof and to account to Eskom.”
Municipal spokesperson, Mr Kingdom Mabuza said the municipality is on track to meet their obligation.
“We are still working with Eskom and provincial government on the long term sustainability plan,” Mabuza said.
However, it is not all plain sailing as the municipality is worried about the payment levels that have dropped to 70%.
“We urge all our customers to come forward and pay so that we can keep the lights on,” Mabuza said.
Mabuza confirmed the R63-million was paid to Eskom on Friday March 17.
Coetzee requested more information on the proposed payment plan from the municipality to Eskom before March 29.
ALSO READ:
https://www.citizen.co.za/witbank-news/88436/eskom-not-allowed-supply-electricity-directly/
https://www.citizen.co.za/witbank-news/88348/municipality-must-pay-r22-million-end-march/
