With Eskom now publishing its intention to disconnect supply to two defaulting municipalities, the Democratic Alliance (DA) in the Northern Cape reiterates our request for the provincial government to brief the relevant portfolio committee fully on the status of the Eskom debt relief programme.
Both the Renosterberg and the Kai !Garib local municipalities, which now face punitive loadshedding due to persistent non-payment of Eskom accounts, originally qualified for the Eskom debt relief programme. Instead of clearing debts from municipal ledgers and restoring financial stability, however, debts owed by these two municipalities have increased by more than R421 million in just two and a half years. Outstanding accounts owed to Eskom by these two municipalities now amount to more than R1.196 billion.
I raised my concerns today with officials from the Northern Cape Provincial Treasury, who described Eskom’s decision as ‘premature’. But the consequences of termination and the conditions that must be met were clearly outlined to qualifying municipalities, including Renosterberg and Kai !Garib. Conditions set as part of the debt relief programme, like keeping the current accounts up to date and adopting cost-reflective tariffs, are basic elements of municipal management that are also captured in other laws and policies. Eskom’s decision can’t be seen as a surprise, but rather as the inevitable consequences of municipal failure to comply with the basic terms of their agreement.
Eskom’s decision raises concerns about the future and financial sustainability of the three municipalities that have been kicked out of the debt relief programme. It also raises questions about the provincial treasury’s failure to either notice or to act on the warning signs.
Ultimately, residents are left powerless and paying the price for municipal shortcomings.