INTERRUPTION OF BULK ELECTRICITY SUPPLY TO DEFAULTING MUNICIPALITIES

Friday, 10 April 2015: Eskom has moved to notify all parties who are likely to be materially and adversely affected as the company contemplates interrupting bulk electricity supply to the top 20 defaulting municipalities across the country with effect from 05 June 2015.

As at 31 March 2015, the total municipal arrear debt greater than 30 days was R4.6 billion. Of this amount, the top 20 defaulting municipalities are currently indebted to Eskom to the amount of R3.68 billion for the bulk supply of electricity.

The interim Chief Executive of Eskom Mr Zethembe Khoza says: "Non-payment for electricity undermines Eskom's statutory obligation to generate and supply electricity to municipalities nationally on a financially sustainable basis. We have therefore decided to exercise our right according to the provisions of the Electricity Regulation Act 4 of 2006 and the supply agreement with municipalities, which entitled us to disconnect the supply of electricity to defaulting municipalities."

Eskom recognises that the disconnection of electricity supply may cause undue hardship to consumers and members of the community, and may adversely affect the delivery of other services, however, customer disconnection is always the last resort explored.

In view of this, Eskom is contemplating a regulated interruption of electricity as indicated below:

Monday to Friday      Saturday and Sunday

06h00 - 10h00                07h00 - 10h00

17h00 - 21h00                17h00 - 20h00

A list of defaulting municipalities will be published per province by 30 April 2015 in local provincial media channels. Consumers within the jurisdiction of a defaulting municipality will be given adequate notice in terms of the Promotion of Administrative Justice Act, no 3 of 2000, and will be given the opportunity to make written representations to Eskom.

NOTES TO EDITORS

Below is a list of the top 20 defaulting municipalities (in no particular order):

· Maluti-a-Phofung Municipality

· Matjhabeng Municipality

· Emalahleni Local Municipality

· Ngwathe Local Municipality

· Thaba Chweu Local Municipality

· Lekwa Local Municipality

· Govan Mbeki Municipality

· City of Matlosana Local Municipality

· Naledi Local Municipality

· Thabazimbi Local Municipality

· Msukaligwa Local Municipality

· Lichtenburg Municipality

· Nala Local Municipality

· Makana Local Municipality

· Madibeng Local Municipality

· Randfontein Local Municipality

· Dihlabeng Municipality

· Nketoana Local Municipality

· Nama Khoi Local Municipality

· Westonaria Local Municipality

Statement issued by Eskom, April 10 2015

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