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Eskom issues stern warning to defaulting municipalities

Eskom says it will not hesitate to cut off power to defaulting municipalities.

Power lines leaving Eskom’s Duvha power station, 15km east of Witbank. Picture: AFP.

CAPE TOWN - Eskom has issued a stern warning to defaulting municipalities that it will not hesitate to cut off their power supply.

The Kannaland Municipality is one of several in the country which have failed to pay its electricity bill.

It has until the end of the week to pay R12.7 million to the power utility.

The power utility's Khulu Phasiwe said, "Disconnection is not our priority to be honest with you. Our priority is to engage and hear as to what issues are and how you commit going forward. But some municipalities do not come to us, they do not pay anything even though we sent letters."

Meanwhile, organisations and business have expressed concern about the 9,4 percent electricity tariff hike which comes into effect from April, saying some companies will have to start restructuring.

The National Energy Regulator (Nersa) announced the tariff increase yesterday which allows the utility to recover R11.2 billion.

Eskom had wanted to recover R22,8 billion and says it's now in a difficult position.

The Chamber of Mines said job losses and restructuring at mining companies are a last resort, but may be a consequence of the tariff hike.

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