KZN: Newcastle Municipality tries to force Eskom to keep the lights on

Municipal Manager, Muzi Mayisela will only be able to provide feedback on Sunday, 29 September 2019, with regards to whether Newcastle Municipality’s application to interdict Eskom’s power interruption, is successful or not, Newcastle Advertiser reports.

Mayisela indicated late this afternoon the municipality and CoGTA were still in consultation with the senior advocate, appointed to draw up the necessary court papers.

The high court application to interdict Eskom from carrying out electricity interruptions is likely to be filed on Saturday, 28 September, or by latest on Sunday, 29 September, according to Mayisela.

Newcastle Municipality informed residents via social media that it: “…Did not receive any formal communication from Eskom that they will be cutting electricity.”

The message from the municipality notified residents it was made aware of Eskom’s intentions via the media, and the municipality intended to apply for a high court interdict against Eskom.

In a statement issued this afternoon, CoGTA MEC, Sipho Hlomuk, expressed concern regarding Eskom’s notice to cut electricity supply on Monday.

According to the statement, “There are currently concrete proposals on the table, including a proposed payment plan to Eskom that is affordable and can be honoured by the municipality.”

However, Eskom officials have told the media that they still haven’t received a revised payment plan from the municipality. It is now a month after the energy supplier warned it was considering implementing power interruptions due to non-payment.

Mr Hlomuka concurred a blackout would have ‘catastrophic consequences for the local economy of Newcastle’.

“All parties have shown their willingness to help with resolving this impasse. We are exploring a number of options and we are already at an advanced stage,” stated Mr Hlomuka.

SW Scott, who spoke on behalf of the Newcastle Business Forum (NBF) said, “If it is in court, they won’t be able to argue themselves out of this one. Without electricity, there is no petrol or food or water. Without electricity, this town will die. Newcastle will be killed.”

Asked about the NBF’s effort to have Newcastle’s consumers supplied directly by Eskom, Rev Scott admitted that of all the Government departments it had written to, only the provincial department of Treasury had responded.

“Treasury acknowledged receipt of our letter, and that was it. That was the only response we got,” said Rev Scott.

“However, we will be taking serious action… Even if it costs us. We have to ensure the money we pay to the municipality is used for the purpose for which it was intended. The NBF will decide on the course of action next week.”

DA Councillor, Bertie Meiring lamented that the high court application would cost the town more money, in terms of fruitless and wasteful expenditure, and was uncertain why the municipality had ‘taken so long to respond to Eskom’.

“At the Council meeting on Wednesday, I asked about the Eskom payment plan, because the Council still hadn’t been informed about what the municipality intended to pay Eskom towards its outstanding debt, and over what period. The municipality must be put under administration. I am 100 per cent certain the ruling party is incapable of governing the local municipality.”

Dr Koos Vorster, who spoke on behalf of the IFP, said what worried him the most were the mixed messages being shared by residents.

“First people said they heard the municipality had signed a deal with Eskom. Then, there were people saying they heard the municipality hadn’t signed a deal. The problem is the municipality is not honestly communicating what is going on,” said Dr Vorster.

He admitted he had no faith in the municipality sticking to a payment plan, anyway.

“The first deal signed with Eskom was on March 2018, and by July I realised from the financials that the municipality had not paid its account a single month since they signed the deal, and I am referring to the current account as well as the amount they agreed to pay towards the outstanding debt. We [the IFP] sent a letter to the Executive Committee (Exco) more than a month ago asking for an administrator to be appointed. We feel all the officials are compromised and there is no financial discipline at the municipality. Our proposal to appoint an administrator was never served before Exco,” said Dr Vorster.

He believes that as an organ of state, Eskom has to resolve its issue with the municipality via the platforms available to inter-Governmental organisations, and cannot disrupt the power supply to the town.

Eskom however, warns it is well within its rights not to supply a consumer who isn’t paying for the service, in the same manner, the municipality exercises its rights to disconnect residents who haven’t paid their municipal bills.

Newcastle Mayor, Dr Ntuthuko Mahlaba was contacted for comment but had not responded at the time of publication.