Eskom, 21 defaulting municipalities reach payment agreement
Eskom says that municipalities that have made arrangements to pay their bills, will no longer face power cuts.
JOHANNESBURG - Eskom has signed agreements with 21 of the 34 defaulting municipalities to recoup unpaid bills worth R10.2 billion.
A number of municipalities around the country faced lengthy power cuts after being warned by Eskom to pay up.
There were concerns that the cuts could impact negatively on businesses and industries.
Eskom says that municipalities that have made arrangements to pay their bills, will no longer face cuts.
Spokesperson Khulu Phasiwe says: “So far we have over 20 municipalities that have signed payment agreements with Eskom and have also started making payments into Eskom's account.”
A few weeks ago, AfriForm turned to the courts to stop Eskom from cutting power to the municipalities in a number of provinces but was unsuccessful.
Eskom explained that this was the only way to recoup losses and was operating according to the Electricity Regulations Act.
In reaction, poultry producer Astral Foods, which has also been hit by drought, induced high feed prices, said it was looking at possibly euthanizing 11.5 million birds.
This was if power was cut permanently to its operations.
(Edited by Zamangwane Shange)