Two local municipalities are facing complete darkness next month if Eskom has its way due to millions owed to the power utility company where the interruption of bulk electricity is scheduled.
Eskom recently released a notice to all parties likely to be materially and adversely affected by its intention to interrupt bulk supply to the municipalities from 27 January.
Msukaligwa and Chief Albert Luthuli municipalities are currently indebted to Eskom in the amount of R139 million and R35 million respectively.
According to Eskom, both municipalities are in breach of their payment obligation to the power utility company and in order to protect the national interest in the sustainability of electricity supply, it has become necessary for them to exercise their right to disconnect the supply of electricity to the two institutions.
The Highvelder contacted Mr David Nhlabathi, spokesman for Chief Albert Luthuli Municipality, about their plan to deal with the matter.
He said the municipality was in the process of rolling out a revenue enhancement strategy to maximise revenue collection.
Mr Nhlabathi said some of the major challenges they were facing were illegal connections as well as businesses and government departments that do not fully meet their financial obligations to the municipality.
“We will not be kind in dealing with businesses, big or small, in collecting what’s owed to the municipality, including thieves stealing electricity from the municipality,” said Mr Nhlabathi.
He said consumers owed the municipality in excess of R390 million of which R42 million was owed by businesses and R40 million was owed by government departments. The rest was owed by households.
He pleaded with consumers to assist the municipality by paying for their services on time to enable the municipality provide quality service.
In a case of the same story but with a different cast, Chief Albert Luthuli Local Municipality also faced possible discontinuation of its electricity supply from 11 April last year and continuing indefinitely should the municipality fail to meet its financial obligation to Eskom, following the municipality’s failure to settle on due dates an amount totalling R32 million for the supply of electricity, part of which had been outstanding and escalating since October 2013.
They, however, managed to avert the power outages when they struck a payment arrangement with Eskom. Last year in May, Msukaligwa Local Municipality owed Eskom R90 million when, according to municipal spokesman Mr Mandla Zwane, as on 31 March consumers owed the municipality R314 million for services.
This debt was broken down as follows. Government departments owed R11 million, schools R1,9 million, businesses R62 million, households R221 million and R19 million was owed for fines and interest. Per service breakdown, R58 million was owed for electricity, R50 million for water, R45 million for property rates, R34 million for sewerage, R35 million for refuse removal and R91 million for other services.
Some of the local businesses people the Highvelder spoke to voiced their dissatisfaction with the manner in which the municipality was handling the matter, wanting to know why they back to the same place they were last year. They are also concerned about the costs involved in the use of generators.
Owners of small businesses were livid about the business they would be missing out on, because they do not have generators. At the time of going to print, Msukaligwa Local Municipality was not available to comment on the matter.
The contemplated interruption of electricity will result in temporary scheduled disconnections at the following times: Monday to Friday: 06:00 to 08:00 and 17:00 to 19:30. On weekends 08:30 to 11:00 and 15:00 to 17:30.
If no payment agreement can be reached between Eskom and the municipalities, Eskom may disconnect the bulk power supply entirely and indefinitely.
