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‘Power punishment will destroy NC economy’

- PATSY BEANGSTROM NEWS EDITOR

ESKOM’S decision to implement so-called “power punishment” for the Northern Cape municipali­ties of Emthanjeni, Tsantsaban­e, Kamiesberg and Richtersve­ld will destroy the economy of the Province.

The power utility announced earlier this week that due to collective municipal arrears amounting to more than R280 million, it would cut the bulk electricit­y supply to four local municipali­ties in the Province.

As of August 31, 2020, the Tsantsaban­e Local Municipali­ty owed Eskom R154.9 million in arrears while the Emthanjeni Local Municipali­ty, the Kamiesberg Local Municipali­ty, and the Richtersve­ld Local Municipali­ty each owed Eskom R90.5 million, R21 million, and R12.7 million respective­ly.

FF+ MP and provincial leader of the party, Dr Wynand Boshoff, said yesterday that once again the paying consumers were being punished because the municipali­ties had defaulted on their payments to Eskom.

“The outstandin­g debt of these municipali­ties, which includes towns like De Aar, Britstown, Hanover, Postmasbur­g, Garies, Kamieskroo­n, Port Nolloth and Alexander Bay, has prompted this drastic decision by Eskom to cut the electricit­y,” Boshoff pointed out.

According to Boshoff, Vanderkloo­f in the Renosterbe­rg Municipali­ty was burdened with power punishment for months on end last year and at the beginning of this year. “This was a severe blow to the economy of this holiday town.”

The Renosterbe­rg Municipali­ty has since been dissolved and a by-election will be held on November 11.

The DA meanwhile has called on Northern Cape Premier Dr Zamani

Saul to convene an interdepar­tmental task team that can solve the recurring problem of defaulting municipali­ties.

“It is time for Saul to lead the MEC for Finance, Economic Developmen­t and Tourism, Abraham Vosloo, as well as the MEC for Co-operative Governance, Human Settlement­s and Traditiona­l Affairs, Bentley Vass, in overcoming the obstacles created by municipal failure to pay Eskom’s bills,” the DA’S Fawzia Rhoda said.

Rhoda pointed out that all four of these municipali­ties were repeat offenders and had struggled with the consistent payment of their Eskom bills over the past five years.

“The red flags were raised, but it seems they were ignored by those with the power to prevent municipal arrears from escalating further. In the Emthanjeni Local Municipali­ty, for example, we saw a frenzied collection of rates from residents in February 2020 just to find enough money to stave off a round of punitive load shedding.”

She added that it appeared that some local municipali­ties in the Province were caught in a perpetual cycle of debt.

“The disconnect­ion of bulk supply to ratepayers and residents who diligently pay their accounts is unacceptab­le. At this time of economic crisis, where the country’s economy contracted by 51% while more than 45% of the provincial population find themselves unemployed, we need to do everything in our power to support SMMES and to get the local economies working again.

“We also need to ensure that there is a reliable, safe electricit­y supply that can support the ongoing delivery of basic municipal services and essential services like health care and education.”

Rhoda pointed out that in the Richtersve­ld Municipali­ty hopes for post-pandemic economic recovery were focused on the proposed developmen­t of the Boegoebay Harbour and associated industries. “Without the guarantee of a reliable electricit­y supply, neither local nor foreign investors will see this project as an investment opportunit­y and will regard it as a risk too high to take. “

She added that the Department of Trade and Industry had also previously rejected applicatio­ns for the designatio­n of a Special Economic Zone in Upington because the local government could not guarantee electricit­y supply.

“If we do not step in now, no local municipali­ty in the Province will ever again be able to offer that guarantee to any prospectiv­e investor.

“It cannot be accepted as some sort of standard operating procedure that Eskom must first threaten to punish residents with bulk disconnect­ions before municipal officials find the money to pay outstandin­g debts.”

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