Municipality owes Eskom R40m

THE cash-strapped Enoch Mgijima municipality owes Eskom R40-million for electricity after failing to collect the revenue in the Komani-based local authority.

Reacting to queries from the Daily Dispatch, municipal spokesman Fundile Feketshane said: “The municipality wishes to confirm owing funds to Eskom, which we pay on a monthly basis using the municipal budget”.

He said the municipality had noted the escalating bill and had requested a meeting with Eskom “so that there is common understanding and reconciliation of the figures”.

Feketshane said the municipality was in arrears because it was owed by households, government departments, businesses and parastatals.

“A list of all the defaulters is being compiled so that we are able to trace them and impose penalties for stealing electricity. The municipality has recently advertised for the service provider to conduct an audit of old electrical meters and once that is done, we will further advertise for a service provider to install new meters that must be monitored,” he said.

The cash flow, Feketshane said, would improve once all this was done, as well as collecting rates, levies and other taxes.

Eskom provincial spokesman Zama Mpondwana said the municipality had been issued with a notice to remedy the breach of non-payment.

“The failure to remedy a breach in payment results in Eskom interrupting bulk supply to any municipality as a last resort. However Eskom will continue to engage Enoch Mgijima Local Municipality with the view that payment for bulk electricity delivered is essential for the sustainability of Eskom and the electricity supply of SA,” Mpondwana said.

He said the power utility did not share customer account details with the parties. Eskom however divulges such information when the Promotion of Administrative Justice Act process is being followed, prior to the actual interruption of supply. —