Millions due now

The local municipality needs R116 893 666.72 to keep Eskom happy this month.

Eskom billed the local municipality R22 084 989.72 for secondary accounts and R94 808677 for the main account.
The winter cold also had a huge effect on the accounts and made it skyrocket as consumers all reached for heaters, electric blankets, constantly boiling hot water to make a cuppa Joe or refill warm water bottles, and switched on under-floor heating to keep warm. And unfortunately along with the increased use of electricity comes a large bill.
In May Eskom invoiced the municipality R54 035 967 and in June R62 336 735.41 which the municipality managed to pay.

“The use of electricity has increased dramatically over the past three months and we expect that it may even be higher given the effects of the recent and current cold spells. Only late August should we see a reduction of utilisation and by October the account from Eskom will be normal again,” said the Municipal Manager, Mr Theo van Vuuren.

He said the total arrears on secondary accounts (areas such as Ganala/Kriel, Ogies, Phola, Rietspruit, Clewer) are R20 million and a repayment plan with interest being suppressed is in place. Payments against this plan have been made as planned with next payment of R5 million due end July.

The main account arrears are also bind into a repayment plan with all interest suppressed. The next payment against that plan is due September. The current balance on this arrangement is R544 million.

Predictions of a slow down in the economy after the closure of the steel giant, Highveld Steel, came true.
Van Vuuren said payments from customers are still slow, and since December they can clearly see the effects of the down turn of the economy on the ability to pay. The number of unemployment increased and many people have registered as indigent and or made payment arrangements with the municipality.

“Programmes to replace meters and install meters are on track and we now have sufficient pre paid meters in stock. On an overall level I am however concerned with the income stream from customers as we are still not able to recover fully our electrical costs from consumers. Drastic actions by the new meter reading and cutting as well as debt collection companies are being introduced in a targeted manner and should lead to improvement over time. However, there remains a culture of non compliance prevalent with many and until everyone start to understand the relationship between personal gain and community interest it will be an uphill battle for the municipality to balance the Eskom account,” Van Vuuren raised his concerns.

READ ALSO:
At least Eskom is still talking to us
Please Eskom, leave the lights on