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Municipalities owe power utility R400m

Three of the municipalities in North West had to be bailed out by the provincial government this week, after being threatened with a complete blackout

ELECTRICITY utility Eskom is owed R400 million in arrears by municipalities throughout the country.

Three of the municipalities in North West had to be bailed out by the provincial government yesterday after being threatened with a complete blackout.

The North West finance department had to step in to save Naledi, Ventersdorp and Tswaing municipalities, which owed a whopping R33,5million.

Eskom national spokesperson Hilary Joffe said threatening a municipality with cut-offs was unusual.

"Over the past two years only 11 notices to disconnect power have been issued to municipalities around the country. They (accounts) have since been settled, like the case in North West. We start getting worried after 15 days of non-payment.

"The total amount owed by municipalities to Eskom is R418,3 million."

These are figures collated by the end of June. Naledi owes R18 million, Ventersdorp R8 illion and Tswaing R7,5 million.

The province's intervention follows a notice served on these municipalities by Eskom threatening to disconnect electricity if outstanding debts were not settled by September 8.

Eskom gave municipalities 14 working days to comply. Yesterday's agreement, however, meant the ultimatum had been reversed and that the municipalities would have to settle the total over an agreed period.

The departments of finance and local government in North West agreed to co-sign and would monitor the agreement.

Finance MEC Louisa Mabe said: "The disconnection could have plunged our communities into total darkness, leading to undesirable consequences for businesses and households."

She called on all consumers of electricity and other services to pay their municipal accounts on time in order to avoid any disconnection of services.

Eskom regional sales and customer service manager Bandile Jack also urged electricity users to stop stealing electricity.

"By not paying us, you are affecting those who are paying for the services," he said.

Jack pleaded with locals to report illegal connections.

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