Power supply fears as EMLM ignores debt deadline

THE clock is ticking for Enoch Mgijima Local Municipality (EMLM) after the local authority failed to honour its payment plan agreement as it concerns electricity debt, with Eskom.

The municipality has subsequently been served with a notice by the power in which it acknowledged the R44-million debt and undertook to pay R10-million in March, R24-million on or before July 31 and another R10-million on or before November 30 this year.

The payment plan agreement, which is in possession of The Rep, indicates that if the municipality defaults in payment of any one of the amounts

“If the municipality fails to adhere to the agreement, Eskom may, without further notice, take whatever legal remedies available to it, including [the] 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 municipality had been issued with a notice on how to redress the default.

“[In case of] failure on the part of the municipality to implement remedial action, Eskom will notify all affected parties of the date of bulk electricity supply interruptions, should the company decide to proceed with it.”

The Rep reported (“Power cuts put on people and businesses who were stealing electricity and services for which payment was not being received.

Since the beginning of this year, the municipality has been struggling to make monthly payments to the power utility and Eskom has, since that time indicated plans to implement power cuts due to the outstanding amounts.