LATEST ON ESKOM CRISIS
The newspaper reported last week that in September last year TCM owed Eskom some R164 million. Since then, this account has increased with a staggering R32 million. This governing body now owes the service provider R196 million.
LYDENBURG – “Residents should not press the panic button as yet.”
Thaba Chweu Municipality (TCM) has finally responded to the electricity crisis facing the town after Eskom has, for the second time in 10 months, threatened to disconnect the power supply to the TCM district.
The newspaper reported last week that in September last year TCM owed Eskom some R164 million. Since then, this account has increased with a staggering R32 million. This governing body now owes the service provider R196 million.
Last year AfriForum had to intervene and apply for an urgent interdict to prevent disconnection. The municipality then entered into a payment arrangement for the period of November 2013 to November 2014 for the remaining balance. This arrangement entailed that all monthly current accounts be paid timeously and in full. A settlement agreement was crafted and signed by all parties and presented to court where all parties adhered to the agreement.
Since then it would seem that TCM once again did not honour this agreement resulting that Eskom is now obliged to possibly disconnect electricity in line with the Promotion of Administrative and Justice Act No. 3 (Paja)
A notice letter was thus send to AfriForum, the MEC of Gogta, the MEC for finance and the HOD of Cogta regarding the imminent disconnection.
TCM in its response said there was no need to overreact regarding the looming disconnection. “The MEC for Cogta will have a meeting with the municipal manager and CFO of all affected municipalities, including TCM.”
The governing body added that there will be an establishment of a task team which will be responsible to make presentation on the status of Eskom in the province. The committee is comprised of the three dstrict municipal managers, Cogta, finance representatives and municipal managers of other municipalities which include Lekwa, Thaba Chweu and Emalahleni. “The team met last week and we are awaiting the outcome before we can issue a statement. Residents should not press the panic button as yet. The municipality of TCM and the provincial government are taking this matter very seriously.”
INFO BLOCK
Eskom also replied to queries from the newspaper. The service provider told Steelburger/Lydenburg News that it makes every effort to ensure that customers pay their accounts.
Eskom constantly monitors payments and is willing to enter into reasonable payment agreements that take into account defaulting customers’ circumstances. Historically, payments by municipalities are strongly correlated to them receiving the equitable share from National Treasury (payments in December, March, June and September). Previously this funding was sufficient to settle outstanding electricity debt, but this is no longer the case with municipalities facing increased electricity prices and reduced funding.”
Eskom said the disconnection of supply was a last resort. “In line with the Promotion of Administrative Justice Act (2000), the company sent disconnection notices to some of the defaulting municipalities during the year. No disconnections have yet been effected.”
It also said that the total arrear debt of all municipalities in Mpumalanga was R1,3 billion as at the end of June 2014.“Many of these municipalities are making progress in settling their outstanding bills. The Thaba Chweu Municipality has paid R17 million on their current account. Eskom continues to engage with all its customers and only disconnects power supply to defaulting customers as an absolute last resort.”
