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Eskom signs deal with municipalities over unpaid bills

‘Municipalities need to make arrangements’ – Khulu Phasiwe.

JOHANNESBURG – Power utility Eskom has signed agreements with 21 of the 34 defaulting municipalities to recoup unpaid bills worth R10.2 billion and ease the pressure on businesses, the firm said on Tuesday.

The scheduled power interruptions in Africa’s most industrialised economy could negatively impact business and industries that rely on power in municipalities located in some of the key provinces in the country.

“Municipalities need to make arrangements or they will have to face the repercussions of having power interruptions,” Eskom’s spokesman Khulu Phasiwe told Reuters.

The state-owned power utility said in a statement it was within its power to cut electricity completely according to the Electricity Regulations Act and municipality supply agreements but will only implement scheduled disruptions.

Poultry producer Astral Foods, which has also been hit by drought-induced high feed prices and from an over-supplied domestic market, said earlier this week it could come under further pressure if Eskom carries out the interruptions in a district where some of its operations are located.

“If it’s a permanent power cut we would have to euthanise all 11.5 million birds,” Astral’s managing director of agriculture Gary Arnold told Reuters.

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Why were the arrears allowed to balloon to R 10,5 billion ?

If I had to forsake payment I would be cut off immediately!

Makes the ANC look bad – the ANC are bad!

Eskom kicking the ANC in the nuts.

Why should they have to resort to this?

these arrears are really an attempt at redistribution of wealth. the HAVES HAVE to pay the HAVE NOTS HAVE NOT to pay.

That is partly why they need these huge annual increases, those that pay are paying for those that don’t. Soweto for years.

I still say cut them off let the reaction come from the voters that put those thieving councilors in office.

I live in one of these municipalities and just to clear something out. At least is my municipalities case the problem isn’t that the community isn’t paying their accounts but that the money that the municipality gets from the community is used to pay salaries and bonuses (and the odd bit of corruption here and there) and thus leaving Eskom not paid. If our municipality is cut off we as law abiding paying citizens will in effect be punished as we have to get our electricity through the municipality and cant bypass them and go direct to Eskom.

End of comments.

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