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Eskom slams municipalities

───   LUCKY NKUYANE 08:31 Sat, 09 Jul 2022

Eskom slams municipalities | News Article

“There is an unwillingness from municipalities to settle their debts.”

This is according to General Manager of Eskom’s Central East Cluster (Free State and KwaZulu-Natal), Agnes Mlambo.

Her reaction follows in the wake of court judgments this week against, among others, the Koffiefontein-based Letsemeng and Klerksdorp-based Matlosana municipalities.

The ailing power utility has slammed both Free State and North West municipalities for spending millions on legal costs instead of paying their debts which run into millions of rand.

According to Mlambo the municipalities had approached the courts to challenge Eskom's intention to cut power supply due to non-payment.

She adds that both municipalities had their cases dismissed with costs.

Both municipalities are yet to comment on the OFM News' inquiries.

The power utility has been rolling out rotational stage 6 load-shedding.

"These judgments conclude lengthy legal battles that started in 2020 when Eskom served the municipalities notices to interrupt electricity services due to non-payment of electricity accounts; and it is Eskom’s belief that these judgments put the cases to rest as they have been used by the delinquent municipalities to continue taking payment holidays," she says.

In January 2020, Letsemeng’s arrears were said to total R41,1million.

Two and a half years later, the municipality’s overdue debt allegedly grew to R119,7million.

Mlambo adds that similar to Letsemeng, Matlosana’s debt stood at R422,4 million in January 2020, and has now reached a staggering R1,054 million.

"These municipalities collect revenue from electricity sales at a mark-up from their customers, but do not pass the revenue on to Eskom. In the meantime, Eskom must cover the costs of diesel, coal, salaries and other expenses to keep the lights on in these non-paying municipalities," Mlambo further adds.

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