Power utility Eskom has entered into payment agreements with 10 out of the 20 defaulting municipalities which owe Eskom for non-payment of bulk electricity supply.

Last month, Eskom announced that it had moved to notify all parties who are likely to be affected, as the company contemplates interrupting bulk electricity supply to the top 20 defaulting municipalities across the country with effect from 5 June 2015.

“At the time the total municipal arrear debt greater than 30 days was R4.67 billion. Of this amount, the top 20 defaulting municipalities owed Eskom about R3.68 billion for the bulk supply of electricity. Since the announcement, the total municipal arrear debt has been reduced by R54 million,” the utility says.

The utility said that the bulk electricity supplies of municipalities that have entered into a payment agreement with it will not be interrupted.

However, municipalities have to comply consistently with payment agreement terms on a monthly basis. If these conditions are not met, interruptions of supply will be implemented without further notice.

The total 10 municipalities that have entered into payment agreements with Eskom are:

  • Nama Khoi Municipality in Northern Cape
  • Nketoana Municipality in Free State
  • Nala Municipality in Free State
  • Dihlabeng Municipality in Free State
  • Thabazimbi Municipality in Limpopo
  • City of Matlosana in North West
  • Naledi Municipality in North West
  • Madibeng Municipality in North West
  • Randfontein Municipality in Gauteng
  • Westonaria Municipality in Gauteng

“Eskom has reached a point where it can no longer continue to provide power without receiving payment in return. We are pleased that these 10 municipalities are doing their bit to ensure that they reduce the debt owed to Eskom and we encourage all defaulting municipalities to do the same,” concludes Eskom acting Chief Executive Brian Molefe.

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