POLOKWANE – The Polokwane Municipality says it does not owe Eskom any money for electricity.
The failure of Limpopo municipalities to deal with overdue debt owed to Eskom, made for an outstanding debt of R315 million to the national electricity supplier at the end of June.
This debt forms part of the R11 billion that is owed to Eskom by municipalities nationwide. This amount is treble that of nine months ago in October 2013, when the total amount owed to Eskom was at R3 billion.
According to DA Limpopo leader, Jacques Smalle, this is also despite Eskom’s attempts to assist municipalities with payment agreements.
“Eskom’s presentation to the department of energy last month, proves that Eskom was willing to be lenient to extend its payment period from 15 to 30 days.
“Issues such as financial skills of municipal managers and implementation of a proper credit policy led to some municipalities using electricity income to fund operational matters,” Smalle said.
He said the DA called on the treasury department to work with the department of cooperative governance, human settlement and traditional affairs (Coghsta) to come up with remedial steps that would improve financial assistance and accounting practises.
According to a parliamentary answer posed a few weeks ago, the largest outstanding amounts owed to Eskom by municipalities in Limpopo at the time were as follows: Thabazimbi owed R71 million, Polokwane R37,8 million, Makhado R36,5 million, Mookgophong R24,6 million and Tzaneen R20,5 million.
Polokwane municipal spokesperson, Matshidiso Mothapo, said the municipality spent between R35 million and R65 million per month.
“We are not in arrears,” he explained.
The National Energy Regulator gave Eskom the go-ahead to recoup R7,8 billion in costs, which may mean an increase of up to 13% next year, contrary to the 8% increase that was granted previously for next year.
All users will be affected by the increase, whether the town or city paid its bulk electricity in time or not.
Hilton Rampedi, Eskom Limpopo’s customer services manager said Polokwane Municipality was not in arrears.
“Polokwane is better than all the other municipalities in South Africa.
“They never owed us a cent. Their account is paid in full every month, five days before the due date,” Rampedi said to Review.
