Central SA
Eskom threatens FS municipality with power cut─── KATLEHO MORAPELA 13:07 Wed, 08 Jul 2020
Residents in the Masilonyana Local Municipality in the Free State might soon have to brace themselves for power cuts.
This, after Eskom issued the municipality with a warning following their failure to honour their payment agreement. The financially troubled municipality owes Eskom over R74 million and is among the Free State municipalities placed under administration.
The utility’s spokesperson in the province, Stefanie Jansen Van Rensburg, says the towns of Theunissen, Brandfort, Winburg and Verkeerdevlei will experience daily scheduled electricity outages between 6 am and 8 pm as of July 15. Jansen van Rensburg says the decision is in efforts to get the municipality to adhere to its agreement and to reduce escalating municipal debts.
Municipalities in the province are ranked among the worst Eskom defaulters, with the cash-strapped Maluti-A-Phofung alone owing the power utility more than R4.5 billion.
OFM News previously reported that the power utility has revealed that municipal debts is fast approaching the R30 billion mark, after it increased by more than R8 billion in the last 12 months.
The utility told the standing committee on appropriations that escalating municipal debt remains a huge challenge for the business and that there has been little change in the payment behaviour of municipalities.
“This situation shall persist until the municipality has rectified the breach. Residents affected by the lack of electricity are encouraged to contact their municipal officials to enquire about the debt payment. Masilonyana Local Municipality’s breach of its payment obligation to Eskom undermines and places in jeopardy Eskom’s ability to supply electricity nationally on a financially sustainable basis,” said Jansen van Rensburg.
OFM News
