NC towns hold breath on lights
NORTHERN Cape municipalities that have renegaded on outstanding payments to Eskom were granted a reprieve yesterday when their lights remained on. However, many held their breaths, uncertain about whether the cuts would be implemented last night.
Despite repeated threats by Eskom that four municipalities in the Province, namely Siyancuma (Douglas and Griquatown), Renosterberg (Van der Kloof, Philipstown and Petrusville), Thembelihle (Hopetown and Strydenburg) and Tsantsabane (Postmasburg) would have their electricity supply interrupted from 6am to 8am yesterday morning, Eskom confirmed yesterday that this did not happen.
“We are engaging the concerned municipalities further, having been made aware that they met with the premier (Sylvia Lucas) on Friday,” Dikatso Mothae, Eskom national spokesperson, said yesterday.
Originally, six municipalities in the Province were scheduled to be cut but the power utility announced on Friday that the pending interruptions of bulk electricity supply to two, Siyathemba and Kai Garib, had been suspended.
“Both these municipalities made positive contributions towards their overdue debt and the revised payment arrangements for the outstanding amounts have been accepted,” Eskom national spokesperson, Khulu Phasiwe, said in statement.
However, the disruptions at the remaining four municipalities were scheduled to go ahead yesterday morning.
Eskom said yesterday that it remained mindful of the impact supply interruptions would have on electricity consumers, thus the interruption of supply to municipalities for non-payment was always implemented as a last resort.
The situation in the Tsantsabane Local Municipality has meanwhile raised concerns among local residents, with a DA councillor, Mimi Swart, pointing out that the situation has caused a great deal of unhappiness in the town.
“A contributing factor to the residents’ unhappiness is that only part of the town buys their electricity from the municipality,” Swart said yesterday.
She added that it was common knowledge that these accounts and other municipal charges were paid regularly and that it forms the basis of the municipality’s income. “The other areas buy their electricity directly from Eskom and will not be affected by the electricity cuts.”
According to Swart, very few residents of the town currently received monthly accounts and had to ask the municipality for a statement in order to settle their accounts.
“Repeated requests to reinstate the issuing of municipal accounts have fallen on deaf ears. The poor financial position of the municipality contributes to the shocking condition of the town’s streets, while large portions of the residential areas have had no street lighting this year due to a lack of money.
She pointed out further that the town had no qualified electrician or building inspector, while the contract of the municipal manager expired at the end of last month.
The acting municipal manager, Julius Theys, said yesterday that the municipality owed Eskom R77 million, which had been outstanding since 2014.
He denied allegations, however, that accounts were not sent out monthly.
“The municipality sends out 11 000 accounts every month, and relies on the Post Office for delivery. However, there have been issues with delivery by the Post Office, but all consumers are welcome to contact the municipality for their accounts if necessary.”
Theys explained that most suburbs in the town purchased electricity directly from Eskom.
“The municipality only provides electricity to the traditional white suburbs. One of the problems we have is that we need to increase the revenue base and most of the service delivery issues in the town relate back to the fact that we do not collect enough revenue to provide services. For example, we purchase R2 million water from Sedibeng a month, but the water income is only R90 000. This is a serious problem and means that we do not have enough revenue to cover the costs of basic day-to-day service delivery, like the maintenance of roads and street lighting. We need to go out and collect the money that is owing but we also need to increase our revenue base.”
According to Theys, the payment rate for municipal accounts in the town is 40 percent.
Regarding Eskom’s threat of electricity cuts, he confirmed that electricity was not cut in the town yesterday morning, but said he expected cuts last night.
“There are so many stories going around, we are not sure what is happening. Eskom wants payment of R20 million before they start discussions. This isn’t a problem – we can go out and get that money but the challenge is to enter an agreement with Eskom regarding the repayments and to honour that agreement as well as cover the interest costs on the loan itself.”
He added, however, that the municipality had been in meetings with various role-players throughout the weekend and was scheduled to hold an intervention meeting with National Treasury today to map the way forward.
“We are also looking at a turnaround strategy, and we have been in discussions with solar plants in the area so that we can come off the electricity grid, as well as looking at drilling boreholes in the town so that we can supply our own water.
“The problem is that there is 60 percent unemployment in the town and a lot of the jobs currently are not sustainable, so the reality is that people cannot afford to pay.”
Xhanti Teki, the media liaison officer for the Department of Coghsta, could not be contacted for comment from the department.