No power deal yet
Eskom rejects EMLM repayment plan
ESKOM has rejected Enoch Mgijima Local Municipality's (EMLM) payment plan to settle millions of rands in debt for the bulk electricity supply to the area.
The local authority’s plans did not meet the requirements set out by the power utility.
The Rep reported (“EMLM strikes deal to avoid power cuts”, April 6) that the local authority had signed a payment plan with Eskom to prevent the power utility from implementing power outages which had been scheduled for April 3 due to an unpaid debt of R44-million.
EMLM submitted the payment plan to Eskom on Monday but it was rejected.
Eskom spokesman Zama Mpondwana said the power utility did not consider the plan by EMLM as acceptable in addressing the arrears and the overall debt.
“Eskom will continue with the planned interruptions of electricity supply for the municipality. The power cuts are scheduled for May 3 and will be suspended only if Eskom and the municipality reach an agreement on the plan to settle the debt.”
In an interview with The Rep yesterday, EMLM mayor Sisisi Tolashe confirmed that the plan had been rejected.
“Last month we had a meeting with Eskom where we had serious discussions and we agreed that we would be making monthly payments. We made a R12-million payment and in that meeting we were told to pay an additional R4-million which was done.
“Yesterday we received a letter informing us that our plan was rejected and that the power interruptions will continue as scheduled. The mayoral committee will have meetings to discuss the way forward which will be communicated to Eskom.”
The Rep has learnt that the municipality failed to make payments to Eskom in March which had resulted in an additional accumulated arrears and that the R16-million did thus not make a difference to the debt.
On Wednesday, representatives from EMLM including Tolashe, the Chris Hani District Municipality, the national Department of Water and Sanitation, the Department of Cooperative Governance and Traditional Affairs (Cogta), Border-Kei Chamber of Business (BKCB) and the office of the premier had a meeting to discuss the issue of electricity and Eskom’s plans to cut the power.
In the meeting, no financial commitments were made by present stakeholders to assist the municipality to pay the debt. It was also agreed that communication and updates about the electricity situation should be made available to the public by EMLM.
Cogta spokesman Mamnkeli Ngam indicated the department would support the municipality where there was a need and would do everything in its power to ensure lights were kept on in EMLM. “With that said, the municipality must show proactive commitment to have the debt paid and strengthen their revenue collection methods to recover funds.”
BKCB chairwoman Adre Bartis and EMLM representatives mentioned during Wednesday's meeting that hundreds of businesses in Komani were guilty of stealing electricity.
“I have requested a list of all the businesses who have been found to be stealing electricity to check if they are registered with the chamber, and there are any who are registered with us, we will make sure they pay what is due to the municipality as soon as possible.”