Daily Dispatch

11th-hour payment plan to Eskom keeps Enoch Mgijima lights on

- ADRIENNE CARLISLE

Eskom and the Enoch Mgijima municipali­ty have concluded yet another payment plan agreement which will see the ailing municipali­ty pay about R90m of its 2020 equitable share budget straight to the national electricit­y supplier.

The agreement was concluded just days before Thursday’s high court case, in terms of which big businesses in the district wanted the high court in Makhanda to force the two entities to enter into a payment plan to ensure the uninterrup­ted supply of electricit­y to the area.

The Border-Kei Chamber of Commerce and several businesses, including Twizza, Crickley Dairy, Farmhouse Frozen Foods and Shell Ultra City, launched the applicatio­n after Eskom threatened to cut off electricit­y to the municipali­ty.

Towns that would have been affected by the proposed electricit­y outages included Komani, Hofmeyr, Molteno, Sada, Sterkstroo­m, Tarkastad and

Whittlesea.

But if the municipali­ty thought it would avert the court case in its entirety by quietly concluding an agreement with Eskom, it was mistaken. The businesses on Thursday successful­ly applied to the high court to make the payment plan agreement an order of court. Eskom also undertook, as part of the court order, not to switch off the lights to the municipali­ty as long as it stuck faithfully to the terms of the agreement.

The municipali­ty has breached every single payment plan reached with the national power utility to date. If the municipali­ty does so now, its officials risk being found in contempt of court.

Acting judge SM Mfenyana also ordered the municipali­ty to provide evidence every month to the court that it had complied with the court order.

Attorney for the businesses Brin Brody said the municipali­ty had been ordered to pay all the costs of the applicatio­n except Eskom’s costs. The national utility will foot its own legal bill. The municipali­ty acknowledg­es that it owes Eskom R265m.

In terms of the agreement, it says it will pay its current account of R23m before the end of December. After that, it will pay R30m at the end of March, July, and November 2020.

Enoch Mgijima mayor Luleka Gubhula said the council resolved in a meeting that this R90m would come out of its equitable share budget for the first and second quarters of the 2019/20 financial year.

It further agreed to pay another R30m at the end of March, July and November 2021. It will make a final two payments of R30m and R32m at the end of March and July 2022.

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