Municipalities in the Free State owe Eskom almost R2 billion and the bulk electricity supplier is threatening to cut off the power supply to a host of municipalities in the province as a result of the huge municipal debts.<\/p>\n
\u201cThis will be grossly unfair to all the people who have paid their accounts,\u201d James Letuka, DA MP in the provincial legislature, told News24. If the money owed to various water boards are included, municipalities\u2019 debts for water and electricity suppliers top R3.2 billion.<\/p>\n
The three worst indebted municipalities in the province are Matjhabeng Local Municipality, Maluti-a-Phofung Local Municipality and Ngwathe Local Municipality. Eskom has already served notices that it would cut supply to these municipalities.<\/p>\n
Their collective municipal debts amount to more than R2.6 million – 73% of the total municipal debt in the province.<\/p>\n
These figures were confirmed by Olly Mlamleli, MEC of the Department of Co-operative Governance and Traditional Affairs.<\/p>\n
Letuka said he has requested an urgent debate of public importance on the matter.<\/p>\n
Notices<\/strong><\/p>\n In April Eskom started sending out notices to towns, informing communities that it plans on implementing extra load shedding or cutting electricity supply from June 5 2015.<\/p>\n Eskom spokesperson, Khulu Phasiwe, told Fin24 that the supplier issued seven notices, four in the Mpumalanga province and three in Free State.<\/p>\n \u201cPayment agreement negotiation are still on the cards, however, municipalities have to comply to payment agreement terms on a monthly basis.<\/p>\n \u201cMonthly current accounts have to be paid timeously and in full. If these conditions are not met, interruptions of supply will continue to be implemented,\u201d Phasiwe said.<\/p>\n Payment agreements<\/strong><\/p>\n On April 29 Eskom reached payment agreements with 10 out of 20 defaulting municipalities.<\/p>\n The following 10 municipalities have entered into payment agreements with Eskom:<\/p>\n \u2022\u00a0\u00a0\u00a0 Nama Khoi Municipality in Northern Cape Ten defaulting municipalities safe from Eskom power cuts<\/strong><\/a><\/p>\n
\n\u2022\u00a0\u00a0\u00a0 Nketoana Municipality in Free State
\n\u2022\u00a0\u00a0\u00a0 Nala Municipality in Free State
\n\u2022\u00a0\u00a0\u00a0 Dihlabeng Municipality in Free State
\n\u2022\u00a0\u00a0\u00a0 Thabazimbi Municipality in Limpopo
\n\u2022\u00a0\u00a0\u00a0 City of Matlosana in North West
\n\u2022\u00a0\u00a0\u00a0 Naledi Municipality in North West
\n\u2022\u00a0\u00a0\u00a0 Madibeng Municipality in North West
\n\u2022\u00a0\u00a0\u00a0 Randfontein Municipality in Gauteng
\n\u2022\u00a0\u00a0\u00a0 Westonaria Municipality in Gauteng<\/p>\nMore on Eskom<\/h3>\n