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Eskom announced in a statement on Wednesday afternoon that it would suspend power interruptions to 11 municipalities that owed the utility money for electricity, as it was "pleased" with progress made in retrieving outstanding debts from the defaulting councils.
Eskom's leadership has taken a hard line against municipalities that have repeatedly failed to pay the parastatal for electricity, defaulted on their debt or failed to honour repayment agreements aimed at softening the financial blow of the debt.
Overdue debt owed to Eskom by municipalities increased by some R1.2bn in September to R26.4bn by the end of October. The top 20 debtors who account for 79% of the total debt. Of these, the top 20 municipalities who owe Eskom money account for 67% of the overall council debt.
In the statement, Eskom general manager in the Northern Cape, Klaas Gouws, said electricity supply to Magareng, Richtersvelds, Khai Ma, Kamiesberg, Ubuntu, Siyathemba, Thembelihle, Phokwane, Dikatlong, Renosterberg and Siyancuma local municipalities would not be interrupted on December 19.
"The ultimate goal is to collect revenue owed to Eskom for the bulk supply of electricity to municipalities. We are pleased with the progress that has been made and hope that the municipalities will adhere to terms of the agreements entered into with Eskom," Gouws said.
Gouws stressed that Eskom employed power interruptions to defaulting municipalities was a measure of last resort and that the utility was eager to enter into feasible repayment agreements with indebted councils.
