Relief as council and Eskom strike deal on R147m debt

Residents in Enoch Mgijima Municipality can now breathe a sigh of relief as the local authority has reached an agreement with Eskom to keep the lights on.

Electricity cuts were to start on Tuesday because the municipality owes the power utility R147m.

The agreement comes after Komani businesses approached the high court on Thursday to interdict Eskom from applying the interruptions, while on the other hand the municipality has been in countless meetings trying to persuade Eskom not to implement the decision.

Municipal administrator Vuyo Mlokoti said on Friday they had signed a payment arrangement with Eskom that would start this month and hold until 2020.

“We will pay R45m at the end of November. The first payment will be at the end of November, the next in March then in July and November.

“Eskom has indicated that it will give us technical assistance where we have limited capacity, and they will do an audit of the infrastructure and install electricity meters,” he said.

Komani local business co-ordinator Jacques van Zyl said: “We understand that as consequences of the legal processes, Eskom and the municipality managed to reach an agreement on the payment plan.”

Eskom spokesperson Zama Mpondwana said the power utility had suspended its planned ‘last resort’ power cuts for as long as the payments came in.

We will pay R45m at the end of November