Eskom,a South African power utility has issued notice to Tokologo Local Municipality that will disconnect a bulk of electricity supply at the end of January 2025 due to unpaid debt.
Eskom has revealed that the municipality is owing them R328 million of unpaid debt and the last payment they received from the municipality was three years ago.
The power utility move will affect the bulk electricity supply in places such as Boshof,Seretse,Dealesville and Hertzogville and the electricity will be interrupted for a couple of hours per day.
Stefanie Jansen van Rensburg,Eskom Industry Support and Stakeholder Management Central East Cluster said the Municipality currently owes Eskom R328 711 887.46(Three hundred and twenty-eight million,seven hundred and eleven thousand,eight hundred and eighty-seven Rands and 46 cents) for the bulk supply of electricity.This excludes the current account of a further R3 682 099.21 (Three million,six hundred and eighty-two thousand,and ninety-nine Rands and 21 cents) which became due and payable on 20 November 2024.
She revealed that the last payment Eskom received from the Municipality was R150 000 on 05 October 2021.
She clarified that the municipality is charging its residents for the consumption of electricity but is failing to pay Eskom.
She added that the Municipality charges,collects and receives money from its customers for the supply of electricity but fails to hand over the portion due to Eskom.This is at Eskom's detriment,and it is not sustainable.The Municipality is responsible for discharging a constitutional obligation but decides to withhold payments to Eskom.The decision by Eskom to proceed with the process to disconnect electricity supply is a measure of last resort to prevent debt from spiralling out of control.
She emphasized that the Municipality's breach of its payment obligation to Eskom undermines and places in jeopardy Eskom's ability to continue the national supply of electricity on a financially sustainable basis.Eskom must exercise its right to disconnect the supply of electricity to the Municipality to protect the national interest in the sustainable supply of electricity to economic growth.
Over the years,the leadership of the Municipality has undermined Eskom and provincial government interventions to solve the issue of unpaid debt.
The Municipality also did not apply for the Debt Relief Programme which was introduced by National Treasury in March 2023,and that programme was aimed on assisting struggling municipalities across the country.