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June 2015
E
skomannounced that it hadno-
tified all parties who are likely
to be affected, as the company
contemplates interrupting bulk elec-
tricity supply to the top 20 defaulting
municipalities across the country
with effect as from 5 June 2015.
The total municipal debt over 30
days is R4.67 billion. Of this amount,
the top 20 defaulting municipalities
owed R3,68 billion for bulk supply of
electricity. Since the announcement,
the debt has been reduced by only
R54 million.
The 10 municipalities that have
entered into payment agreements
with Eskom are:
•
Nama Khoi Municipality, Northern
Cape
•
Nketoana Municipality, Free State
•
Nala Municipality, Free State
•
Dihlabeng Municipality, Free State
•
Thabazimbi Municipality, Limpopo
•
City of Matlosana, North West
•
Naledi Municipality, North West
•
MadibengMunicipality, NorthWest
•
RandfonteinMunicipality, Gauteng
•
Westonaria Municipality, Gauteng
The utility said that the bulk electric-
ity supplies of municipalities that
have entered into an agreement
with Eskom 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.
“We are pleased that these 10
municipalities are doing their bit to
ensure that they reduce the debt
owed to Eskom,” said Eskom Act-
ing Chief Executive, Brian Molefe.
Meanwhile, Eskom has also issued
public notices of impending power
interruptions to defaulting munici-
palities in Mpumalanga and the Free
State Province. The affected munici-
palities include: Emalahleni, Govan
Mbeki, Lekwa, Msukaligwa, Maluti-a-
Phofung, Matjhabeng and Ngwathe.
The utility will implement the power
interruptions from 6am to 10am and
from 5pm to 9pm Monday to Friday
and from 7am to 10am and 5pm to
8pm on Saturdays and Sundays.
Eskom recognises that this will
cause undue hardship to members
of the public and businesses in the
affected areas, and also have an ad-
verse effect on the delivery of other
services. The state owned entity said
that disconnections are a last resort
when all other options have been
explored.
“Eskom is working closely with
the relevant national and provincial
departments through local, national
and War Room structures to manage
themunicipal financial recovery pro-
cess andwe believe that the work be-
ing done within these structures will
yield positive results,” said Molefe.
■
Municipalities payment plan
Power utility Eskom has entered into payment agreements with
10 out of the 20 defaulting municipalities who owe Eskom for bulk
electricity supply.
T
he National Treasury does not
currently have a plan on how
it will finance the trillion rand
nuclear deal signed by Energy Minis-
ter Tina Joemat-Pettersson last year.
Minister of Finance, Nhlanhla Nene
admitted that the programme is a
substantial financial commitment, and
that government isundertakingacare-
ful and thorough analysis of financing
options to ensure the affordability
and long term sustainability.
Gordon Mackay, Democratic Al-
liance Shadow Minister for Energy
said, “It can only be assumed that the
South African taxpayer will foot the
trillion rand framework agreement.”
Questions for the Minister of Fi-
nance and the Minister of Energy
includes:
•
Whether Treasury was consulted
before this deal was agreed upon
and entered into?
•
If so, to what extent?
•
If not, what steps did the Ministers
take to assess the financial feasibil-
ity of the deal ?
•
Details about the procurement and
process?
•
What date will the procurement
process be finalised?
Estimates suggest that the Nuclear
Build Programme cost will range from
R320 billion to R1,4 trillion — exclud-
ing costly overruns.
■
In the dark
News