Eskom secures payment agreement with two munis

South African state-owned power utility Eskom, has announced that its planned interruption of bulk supply to Khai Ma Local Municipality has been suspended after a sustainable payment agreement has been reached.   

“Interruptions due to non-payment of Khai Ma Local Municipality’s Eskom debt totalling R10,794,283 were scheduled to commence on Wednesday, 2 May 2018, affecting consumers in Pofadder.

“Khai Ma Local Municipality’s adherence to the agreement will be closely monitored.  Should the Municipality default on the agreement, supply interruptions will be implemented with 14 days’ notice,” the utility said in a statement.

In addition, the utility reached a payment agreement with the Tswelopele Local Municipality, resulting in suspension of the contemplated interruption of bulk supply to the Municipality on Thursday, 3 May 2018.

In a public notice published on 16 March 2018, Eskom announced its intention to interrupt supply to Tswelopele Local Municipality on 3 May 2018 due to the Municipality’s failure to honour its Eskom debt totalling R33,258,224.97.

“Intensive negotiations with the Tswelopele Local Municipality delivered positive results, leading to a sustainable payment arrangement,” says Bibi Bedir, Senior Manager Customer Service, Free State.

“We are pleased to suspend the planned interruptions but will continue to monitor the Municipality’s adherence to the agreement.  Should they default on their payments, supply interruptions will be implemented with 14 days’ notice.”

Eskom supplies electricity in bulk to Tswelopele Local Municipality who then redistributes it to consumers in Bultfontein and Hoopstad.