Owing to the ANC’s mismanagement of the Emfuleni Local Municipality (Evaton, Sebokeng, Vaal Oewer, Vanderbijlpark, Vereeniging), Eskom has taken over power supply to this Municipality.
The agreement follows a court ruling in July last year in terms of which all businesses pay their outstanding power debt directly to Eskom as from September 2023.
And from 1 November, households will also fall under the agreement.
There is a total of 76 000 power consumers in Emfuleni who will now pay Eskom directly. Eskom will also take responsibility for the municipal power distribution infrastructure.
In turn, Emfuleni will cooperate with Eskom to ensure that power supply is managed effectively, and will relate all relevant information concerning consumers and infrastructure to Eskom.
Although Eskom will benefit from receiving payments for power supply directly from residents and businesses, it does not bode well for the Municipality’s income.
In terms of the agreement, Emfuleni will generate almost no revenue through power supply and the possibility exists that it will not be able to fulfil its other financial obligations.
In addition, the agreement will make it impossible for Emfuleni to settle its historic debt of R5,2 billion with Eskom. The interest on the outstanding debt alone amounts to R12 million per month. Emfuleni currently owes Eskom a total amount of R8 billion.
The FF Plus does not support the agreement between Eskom and Emfuleni, and has suggested that Eskom should freeze the interest on the outstanding debt thus enabling the Municipality to settle its debt.
The agreement will terminate once Emfuleni has paid off all its debt to Eskom.
The FF Plus doubts whether that will ever happen and is of the opinion that Eskom has partially taken over the Municipality.
The situation is just another demonstration of the ANC’s mismanagement and its senior officials who are simply too inept to run a Municipality.
The situation is just another demonstration of the ANC’s mismanagement and its senior officials who are simply too inept to run a Municipality.
