With outstanding debts of R85-million and R65-million for electricity‚ two districts in the Northern Cape have been given notice by Eskom that will interrupt their bulk supplies of power.
The threatened interruptions will last anywhere from two hours at a time initially‚ increasing to 06:00-20:00 by week three “until agreement is reached“.
The Tsantsabane Local Municipality serves the mining‚ agriculture‚ manufacturing and farming sectors. It was flagged as one of the province’s potential investment hot spots following the construction of the Anglo American Kumba Iron Ore’s Kolomela Mine‚ according to the website municipalities.co.za a key town is Postmasburg.
The Gamagara Local Municipality‚ serving the town of Kathu and Olifantshoek‚ boasts the largest single pit‚ open cast iron ore mine in the world‚ according to the website‚ and is the starting point of the Sisheng-Saldanha railway line.
Both are highly indebted to Eskom‚ the utility announced on Thursday.
“Eskom hereby gives notice to all parties that are likely to be materially and adversely affected by its intention to interrupt bulk supply to Gamagara Local Municipality due to failure to honour a payment agreement entered into‚ and the interruption will resume on 29 March 2018 and continue indefinitely.”
The municipality is currently indebted to Eskom in the amount of over R65-million for the bulk supply of electricity‚ part of which has been outstanding and in escalation since May 2016.
“Gamagara Local Municipality’s breach of its payment obligation to Eskom undermines and placed in jeopardy Eskom’s ability to continue the national supply of electricity on a financial sustainable basis‚” the utility said.