South Africa: North West Local Government and Human Settlements On Municipalities Payments to Eskom

North West municipalities to pay Eskom to avoid power cuts

Mahikeng – North West Department of Local Government and Human Settlements together with Eskom and municipalities around the province, is working around the clock to ensure there is no electricity blackouts in all municipalities. The action follows the intention by Eskom to implement power cuts in some municipalities which are not paying their services.

MEC for Local Government and Human Settlements Galaletsang Gaolaolwe said they have been working hard to avoid the situation. “The MEC for Finance, Economy and Enterprise Development Wendy Nelson and myself, have been in constant communication with the affected municipalities to find ways to avert the situation. The last engagements we had was on the 22nd December 2016 where we summoned the Mayors, Municipal Managers and Chief Financial Officers of affected municipalities under one roof to explain the reasons on the failure of payments to Eskom” said MEC Gaolaolwe.

Municipalities cited the following reasons that contributed to escalating debt:

cash flow problems

Non adherence to payment plan

For Mamusa and Kgetleng Rivier, draught situation contributed in them not paying Eskom account as the revenue collected on electricity have been used for other services.

“We engaged with their reviewed payment plan to Eskom and all have submitted their new payment schedules to settle their debts. We are content that all defaulting municipalities will pay Eskom and avoid possible power cuts which will bring unnecessary disruptions and affect local economies” concluded MEC Gaolaolwe.

Municipalities with high electricity debts are Naledi, Ditsobotla and Madibeng. If the structured power cuts go ahead, they will see services in affected municipalities being disrupted during peak times in the mornings and evenings.

The Department is making a clarion call to all communities in the province to pay their services in an effort to improve cash flows of the municipalities.

Source: North West Local Government and Human Settlements

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