'Blackout towns' named

Pretoria - Although Eskom currently has its municipal accounts pretty much under control, there is serious concern about certain municipalities' ability to settle their electricity accounts.

The accounts of nine smaller municipalities across the country are so far in arrears that Eskom may have to disconnect their electricity.

This is apparent from Eskom's statements listing what municipalities owed the utility at the end of December last year.

The statements were leaked to Sake24.com.

The electricity giant has so far been dead quiet about what individual municipalities owe, seemingling because it does not want to destroy client confidentiality.

Certain communities fear that the monies they are paying the municipalities for electricity are not being paid over to Eskom, and that their town's power will be cut sooner or later.

The National Taxpayers Union is currently attempting to get these figures from Eskom in terms of the Freedom of Information Act. The response is expected by the end of February.

Municipalities' arrears at the end of December, nine months into Eskom's financial year, amounted to R174m. Eskom expects payment within 15 days. Only R18m has been outstanding for more than 90 days. According to Mike Schüssler of Economists.co.za, this is small in relation to Eskom's total operations. The electricity provider's turnover for the previous financial year was R53bn.

If one takes a look at certain municipalities' business affairs, taxpayers do have cause for concern, says Schüssler.

More than 38% of the Vaalwater District Council's Eskom purchases so far this financial year, according to the utility's statements, are more than 90 days overdue.

Vaalwater's name was changed to the Waterberg District Municipality and Eskom's entry probably refers to this institution.

Other laggards are the Theewaterskloof Municipality, which includes Caledon in the Western Cape (32.3% more than 90 days overdue), the Magareng Municipality in the Northern Cape, which includes Warrenton (28.5%), and the Dikgatlong Municipality in the same province, which includes Barkly West (27.9%).

Schüssler says it is concerning that 15% of the purchases by nine smaller municipalities in the nine months to end-December are more than 90 days overdue.

The fact that other municipalities are 5% and 10% overdue indicates that municipalities are under severe pressure. At some time or other decisions will have to be made on whether to disconnect these towns' electricity supplies.

- Sake24.com

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