Eskom threatens Ekurhuleni power cut
· Citizen
Residents of Ekurhuleni might find themselves in the dark from next month, as Eskom threatens to reduce or stop the bulk supply of electricity because the municipality owes it more than R3 billion.
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Eskom recently issued a public notice stating that it was left with no other options but to switch off the lights or reduce the bulk supply.
“Eskom hereby gives notice to all parties that are likely to be materially and adversely affected by its intention to interrupt bulk supply to Ekurhuleni metropolitan municipality with effect from 16 April ,” the notice read.
Eskom warns Ekurhuleni residents of potential power cuts
“The municipality has failed to or neglected to settle its electricity account with Eskom on the due date despite several interventions, including dispute resolution through the Intergovernmental Relations Framework Act, 2005 (Irfa).
“The municipality is currently indebted to Eskom in the amount of R3 400 342 988.
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“As early as 2023, Eskom and the municipality, together with various stakeholders, engaged in the dispute resolution process under Irfa.
“At the centre of the dispute was the failure by the municipality to service the current account and they were disputing the interest charged for late payment.”
It said Eskom has made several undertakings that once the municipality starts servicing its account in full, the interest charged on the account will be reviewed. It further said after negotiations, there was no agreement reached.
R3 billion debt
Under the circumstances it was appropriate for Eskom to explore further remedies to stop the debt from spiralling out of control, it added.
Eskom has invited all the affected parties to submit written representations, comments or submissions indicating why the power utility should or should not proceed to reduce or terminate the bulk electricity supply.
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The closing date for the submission is 6 April.
The affected areas include Alberton, Boksburg North and Kempton Park.
Wayne Duvenage, CEO of corruption-fighting group Organisation Undoing Tax Abuse, said: “This approach by Eskom, to hold these errant municipalities (such as Ekurhuleni) to account, is long overdue.
‘Long overdue’
“Eskom is right to go down this road, having had debt payment discussions and reached settlement agreements with them, which the metros then renege on. When the public doesn’t pay, the metro is quick to cut them, so why should Eskom treat the metro differently?
“The municipalities and metros that owe Eskom money have collected the electricity payments from their customers, so there is no reason (other than gross maladministration and corruption) these metros and municipalities have to not pay their bills.
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“Eskom should have exercised their powers to do so (by restricting and cutting supply to municipalities) a long time ago, but were prevented from doing so through political interference.”
Theo Neethling from the University of the Free State said the dispute between Eskom and the municipality reflects a deeper crisis in South Africa’s governance: the financial collapse of municipalities and the political dysfunction surrounding them.
Deeper crisis in SA’s governance
“Eskom argues that the municipality continues collecting electricity payments from residents, while failing to pass those funds on to the utility, forcing Eskom to borrow money to cover operational costs.”
The municipality and the South African Local Government Association did not respond to questions sent to them.