Eskom this week accepted a payment plan from Makana for its R53 million debt. This comes just over a week after the municipality submitted the third version of a proposal for paying off the rest of its debt to the power utility.
Eskom this week accepted a payment plan from Makana for its R53 million debt. This comes just over a week after the municipality submitted the third version of a proposal for paying off the rest of its debt to the power utility.
The plan was a bid to stave off threats of power interruptions to the municipality that formed part of an ultimatum from Eskom last month.
In an emailed response to questions, acting municipal manager Riana Meiring yesterday said, “I received confirmation from Eskom yesterday [Wednesday] that they have accepted and signed the payment plan submitted. An item will be submitted to Council on 25 January in this regard.”
On 7 December, Eskom published a notice in a regional newspaper saying that Makana Municipality was in breach of its payment obligation and it was contemplating a regulated interruption of electricity supply.
At the time Makana’s debt amounted to R58.05m. Eskom rejected Makana Municipality’s initial plan that would have seen the payment of the final tranche in 2020.
Stipulating that the municipality must pay R23m by the end of March, Eskom also requested a new plan by 10 January, which was submitted. It is this version that has been accepted. However its details have not yet been made public.
In its notice, Eskom invited representations, submissions and comments from the public with a deadline of 13 January.
The Grahamstown Residents Association submitted a response.
The letter sent to Eskom by GRA on behalf of its members can be viewed at: http://grahamstownresidentsassociation.co.za/wp-content/uploads/2016/04/EskomLetter11Jan17.pdf
Replying to questions earlier this month regarding Eskom's discussions with Makana Municipality about a proposed payment plan, the power utility’s media desk wrote, “…Any outcome of these discussions will be made available in a formal publication upon the conclusion of the process as defined in the Promotion of Administrative Justice Act.”
