Eskom has issued a notice of intent to reduce, interrupt and/or terminate electricity supply to certain bulk supply points in the City of Johannesburg (CoJ).
The power utility said this was due to the R5.2 billion owed by the city and City Power (CP) to Eskom.
The debt does not include the R1.5 billion that is due to Eskom in June.
“Eskom has been working with CoJ and/or CP for over two years to support the metro in meeting its payment obligations.
“As a result of CoJ/CP’s continued failure to honour its Electricity Supply Agreement with Eskom, including repeated defaults, Eskom has been forced to issue a notice of its intention to reduce, interrupt and/or terminate the supply of electricity to certain bulk supply points against the City of Johannesburg and City Power,” Eskom said.
The power utility maintained that it “cannot be acceptable to the City’s residents and all South Africans” that the city is “failing to pay over Eskom’s share” of electricity revenue collected.
“While Eskom continues to focus on being cost-efficient, escalating municipal and metro arrear debt undermines these efforts. Eskom’s financial sustainability and ability to supply electricity at affordable prices are dependent upon its ability to improve its balance sheet by increasing revenue and reducing expenses. Revenue can only be increased by collecting electricity debts and/or increasing electricity tariffs.
“Across the country, many municipalities and metros are working with Eskom to develop sustainable debt solutions and Eskom is continuing to accelerate its support for this approach. Eskom announced on 5 May that nine municipalities have received council resolutions to sign Distribution Agency Agreements following consultation processes,” Eskom said.
Furthermore, the power utility has also developed the Distribution Agency Agreement (DAA), a “long-term, non-permanent contract between a municipality or metro and Eskom, as part of the Active Partnering initiative”.
“This agreement offers a suite of services and solutions aimed at restoring the sustainability of electricity provision in a municipality or metro by enhancing its technical and financial sustainability.
“The services include skill development and training, replacement or installation of smart meters, as well as Eskom collecting revenue on behalf of the municipality. Eskom is working nationwide to assist in the rollout of this initiative,” Eskom said. – SAnews.gov.za
