Ermelo municipality says Eskom debt is priority
Between March and the end of July this year, the municipality has paid more than R40-million towards the account in arrears, while the current account was up to date as at the end of June.
Msukaligwa Local Municipality has reacted to last week’s official notice by Eskom of its intention to interrupt the bulk electricity supply to Ermelo from 9 October.
In the statement released by the communication unit from the office of the Executive Mayor, Mr S.M. Nkosi, the municipality refers to 25 November last year when Eskom also published a notice of its intention to interrupt the bulk electricity supply to Ermelo / Wesselton,
Because the municipality was indebted to Eskom in the amount of R139-million for the bulk supply of electricity, part of which had been outstanding and in escalation since February 2011.
The municipality then submitted a written presentation and repayment plan to Eskom according to which they requested to pay R10-million upfront and the outstanding debt to be paid over 24 months.
Eskom rejected this proposal, which meant that Eskom would continue with the impending interruption, which was planned for 23 January this year.
In order to negotiate and/or avert the pending supply interruptions, Eskom needed an upfront payment of R50-million by 20 January this year.
The impending interruption was postponed to the end of January after the intervention by the Minister of Energy.
However on 16 February, Eskom began with the intermittent interruption of the electricity supply to the Ermelo / Wesselton area which lasted seven days.
On 16 March, the municipality submitted a revised repayment plan to Eskom and in return Eskom submitted a payment agreement to the municipality.
However, the municipality raised concerns, disagreeing with certain clauses of the agreement, and these concerns stalled the negotiations.
Between March and the end of July this year, the municipality has paid more than R40-million towards the account in arrears, while the current account was up to date as at the end of June.
“It should be noted that even though the agreement has not yet been finalised, the agreement has been adhered to in terms of payment of the current account and the arrears since March this year,” the statement reads.
According to municipal spokesman Mr Mandla Zwane, payment of the current account is up to date and the dispute over the outstanding debt involves the interest charged.
The negotiations between Eskom and the municipality are continuing and, according to Mr Zwane, the municipality has submitted a revised plan and should receive a reply within seven working days.
He added that the municipality was positive that a lasting solution to the matter would be reached soon.
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