Cut off for April is cancelled
TCM demonstrated the cost and benefit of providing the services and it presented a strong case that the current debt, as it stands at R320 million as of March 5 this year, is highly unaffordable given the municipality's revenue potential, the electricity theft and other competing functions and responsibilities.
LYDENBURG – The planned power disconnection in April has been addressed by Thaba Chweu Municipality (TCM) and it has been said that it will not take place.
The financial officer of TCM, Mr Gareth Mnisi told Steelburger/Lydenburg News that the municipality had a series of meetings with Eskom, the National Cooperative Governance and Traditional Affairs and the provincial treasury on the way forward with regard to this issue.
Mnisi said TCM had already installed 1 000 prepaid meters where there were none. He said the service provider eventually agreed that TCM resubmit a repayment plan which is reasonable for its approval.
“The new repayment plan will be adopted by council at the end of the month, but I can confirm that the April disconnection will not take place.
“Eskom should be in contact with the newspaper to provide a notice stating that the cut-off of bulk electricity will not take place in April as previously published in Steelburger/Lydenburg News.”
In the meantime, TCM is awaiting Eskom’s response in this regard. The possibility of the service provider ring-fencing the interest and penalties will make the repayment more affordable.
Once the plan has been approved, the service provider will also possibly assist TCM to reconfigure the supply points so that it can in future avoid the attraction of penalties, which should lead to a reduction in its debt.
In January Eskom issued a notice in Steelburger/Lydenburg News to notify all parties who were likely to be materially and adversely affected by a contemplated disconnection of electricity supply to TCM on April 11.
Eskom’s Mpumalanga operating unit manager, Mr Eric Khoza then told the newspaper that the payment arrangement had not been honoured by the municipality. “Eskom engaged the municipality in question but this process, like the payment arrangement, failed to resolve the issue.
“Eskom has a mandate to supply electricity in a financially sustainable way and cannot afford this debt to escalate.
“Having exhausted the available measures to resolve the matter, Eskom has no other avenue but to institute a disconnection.”Mnisi said he could confirm that no cut-off would take place.Further information on the repayment plan will be provided once Eskom has accepted the proposal.
