DA calls on Minister to clarify Eskom’s plans to cut electricity to municipalities
12 November 2015
The DA is concerned that Eskom is again threatening to cut electricity supply to a number of municipalities for alleged non-payment, despite there being a lack of clarity on which municipalities will be affected, and why.
The threats of disconnection directly contradict claims by Eskom CEO, Brian Molefe who recently informed Parliament’s Portfolio Committee on Public Enterprises that all municipalities have honoured their payment agreements and cut-offs were not on the cards. It is untenable that Eskom is now contradicting the CEO’s sentiments, as well as flouting agreements made with municipalities.
I have today written to Co-operative Governance Deputy Minister, Andries Nel, urging him to provide clarity on the threats. He must address a number of key questions as a matter of urgency:
Whether any municipalities are under imminent threat of cut off? If so, which?
Whether any of the municipalities above have defaulted on their payment agreements with Eskom? If so, why has this occurred?
Whether any progress has been made in the discussions between COGTA and Eskom regarding arrear interest, the interest rate that is being charged to municipalities (prime plus 5%) on overdue accounts, and the payment period from date of invoice?
What steps are being taken to prevent the disruption of supply to municipalities and consequently, their residents?
My colleague, Natasha Mazzone MP, DA Shadow Minister of Public Enterprises, will also write to Minister Brown to ask her to immediately instruct Eskom to halt this plan until the scope of the problem, as well as potential solutions have been identified. Disconnection must be a last resort.
Eskom cannot now penalise municipalities who made paid payment agreements in good faith. Where municipalities have reneged on these agreements Eskom must fully engage all the various stakeholders as to the best way forward to address the problem of non-payment before disconnecting residents.
This issue once again highlights concerns previously raised by the DA over municipal governance. The Eskom debt crisis has been caused by financial mismanagement and poor leadership in municipalities who have failed to pay Eskom what is owed.
At the heart of good governance is service to the people; municipalities must do everything in their power to ensure uninterrupted service delivery and make sure that the needs of residents are always put first.
Issued by Kevin Mileham, DA Shadow Minister of Cooperative Governance and Traditional Affairs, 12 November 2015
