Power cuts put on hold
EMLM accepts legal action likely if debt unpaid
ENOCH Mgijima Local Municipality’s (EMLM) looming electricity interruptions scheduled for Wednesday have been put on hold pending ongoing negotiations with Eskom and a terms of reference document to be signed off by municipal manager Chris Magwangqana this week.
The local authority has been struggling to put together a payment plan that is favourable to Eskom since the announcement of the power interruptions.
The Rep reported (“No power deal yet” April 20) that Eskom would continue with the planned power cuts and these would only be suspended if the power utility and EMLM reached an agreement on the settlement plan for the R44-million debt.
In acknowledgement of the debt payment plan agreement that is in possession of The Rep, EMLM undertook to pay R10-million on or before March 31, R24-million on or before July 31 and another R10-million on or before November 30 this year.
The document also indicated that, should the municipality default in the payment of
If the municipality fails to adhere to the agreement, Eskom may, without further notice, take whatever legal remedies available to it, including disconnection of the electricity supply. The debt will bear interest, “compounded monthly from the date on which the last interest was calculated as indicated in the payment plan,” the document reads.
EMLM mayor Sisisi Tolashe said during a council meeting last Thursday, that electricity problems in the municipality were mainly caused by people and businesses who were stealing electricity and services that were not being paid for.
“We need to fast-track revenue collection so that we are able to pay our debts in time before they accumulate interest like the Eskom bill. Treasury did not bring any form of assistance to the table in the meetings we have attended with other stakeholders. The meetings held with the office of the premier were fruitless. “Councillors, we are on our own. We do not have a plan to pay the full debt as yet. I encourage you all to please report on anyone who steals electricity as we try to minimise the debt and find money to pay Eskom.” municipality.
“We paid that money to Eskom last Wednesday. We started switching off electricity for businesses who had failed to pay and the owners came forward with payments. We are faced with a huge problem of municipal staff who help businesses and individuals put their lights back on after we have turned it off. We will bring anyone found guilty of this to book because they are working against progress and are criminals. Our main focus is to pay the debt in full as requested by Eskom in their latest correspondence. If we do not pay the current account by the end of this month we will be switched off.”
Eskom spokesman Zama Mpondwana said the power utility would proceed with the contemplated interruption of bulk electricity supply to the municipality from May 3 indefinitely.
“This decision was taken after the parties failed to reach an agreement on a plan to settle the debt of the bulk electricity supply to Enoch Mgijima Local Municipality. If no payment is made or no agreement is reached by May 7, Eskom will increase the power interruptions to 14