Eskom might soon cut power to defaulting municipalities
15:47 Tue, 21 May 2019
Eskom might  soon cut power to defaulting municipalities | News Article
Free State municipalities who still owe Eskom billions of rands have to at some stage settle their debt with the power utility. This is according to Eskom deputy spokesperson Dikatso Mothae.

Mothae told OFM News the decision regarding non-payment by municipalities is expected to be made before the end of the week.

She says although Eskom is not immediately planning on interrupting power supply to Free State municipalities, they will however engage the affected municipalities before thinking of abruptly cutting power.

Mothae conceded that anumber of municipalities, not only in the Free State but across the country, have failed to uphold their payment arrangements.

Cash-strapped Eskom is owed more than R14 billion by municipalities in the country.

The Free State is the biggest defaulter in paying its Eskom bills, with municipalities in the province collectively owing more than R5 billion to the troubled power utility.

She said some have actually kept their part of the arrangements while others have not, and there are still court cases ongoing with other municipalities.

Mothae said some had to pay a certain amount of money, but then defaulted on these agreements and only made some of the payments.

In March, Eskom attached Maluti-A-Phofung Local Municipality’s movable assets over an unpaid power supply debt of R2.8 billion. Matjhabeng owes Eskom R1.8-billion  and Ngwathe has a debt of R900 million.

Other municipalities with outstanding debts include Tokologo,Masilonyane and Mangaung.

Mothae says the power utility is expected to make a decision regarding the payment before the end of this week but power cut is often the last resort. 

OFM News/Michael Thlakudi

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