Municipality cut-off threat

ESKOM: NOTICE SERVED ON FREE STATE LOCAL AUTHORITY AS DEBT GROWS

- Oratile Mashilo

Municipalities' multi-billion-rand debt to Eskom continues to grow; the utility yesterday delivered a disconnection notice to Tokologo local municipality in the Free State.

Eskom said that although the municipality had been receiving payments from its customers, it had failed to pay the utility.

"The decision by Eskom to proceed with the process of disconnecting the electricity supply is a measure of last resort to prevent the debt from spiralling out of control," it said.

The municipality owes R328 million for the bulk supply of electricity, excluding the current account of R3.6 million which became payable on 20 November.

Eskom said the last payment received from the municipality was R150,000 in 2021 and it had explored alternatives to accommodate the municipality.

It said it had engaged with the municipality in October 2021 in the dispute resolution process.

"Several workstream meetings were held without any resolution," it said.