Update

KAROO NEWS - Eskom has carried out its threat to cut the power supply to three towns in the Dr Beyers Naude Local Municipality due to vast debts. Eskom says this is because the municipality is not honouring its repayment commitments.

The cuts started on Thursday 11 April, affecting residents in the towns of Willowmore, Jansenville and Steytlerville. During the first seven days of power cuts electricity is off during the week from 06:00 to 09:00 and again from 17:00 to 20:30. On Saturday and Sunday, power is cut from 08:30 to 12:00 as well as from 15:00 to 19:00.

But these times are for the first week only. After that, consumers will be without electricity for 14 hours every day - from 06:00 until 20:00. The 14-hour non-stop supply interruption will continue until full payment is received, or a payment agreement has been reached.

Graaff-Reinet and Aberdeen have been spared the brutal power cuts due to logistical reasons - apparently thanks to an agreement with the municipality that allows Eskom to use municipal infrastructure to supply power to Eskom customers who buy their electricity directly from Eskom.

History
When the ultimatum was given by Eskom at the end of March, Municipal Acting Communications Officer Wilca Smith said according to Eskom's notice the threatened action is as a result of the persistent breach of the payment agreement as per the suspension notice issued on the 29 October 2018.

"Although Eskom has prepared an agreement, signed by the municipality, Eskom did not sign. Technically, there is thus no agreement in place. The municipality is committed to ensure that no interruption of electricity supply will be instituted,” said Smith, promising that the community will be kept updated as negotiations unfold.

At the end of January, the municipality owed Eskom close to R84 million, and this is escalating at an alarming rate with the interest on the debt mounting. The municipality has failed to remedy the breach of payment agreement, despite Eskom’s notice issued in October last year.

A notice was published on 12 April, signed by Municipal Manager Dr Eddie Rankwana, reiterating that technically there is no payment agreement in place, as Eskom did not sign the proposed agreement.

"The municipality has been in continuous negotiations with Eskom. However, these negotiations have now been taken over by the MECs for Finance and Corporative Governance and Traditional Affairs of the Eastern Cape on behalf of the municipality," he said.

After the MECs met on 11 April, they informed the municipality that the matter has been escalated to the relevant Minister. Rankwana admits that the municipality owes Eskom money, but points out that Eskom also owes the municipality money as a result of the wheeling agreement (generation of non-Eskom power) between them.

The municipality has proposed to Eskom that the outstanding accounts be set off against each other, which Eskom is considering. The message concludes by saying that the municipality, together with the Department of Corporative Governance and Traditional Affairs, is considering legal options, and again promises to keep the community informed.

Irate residents blame municipality
Nqaba Bhanga, leader of the DA in the Eastern Cape says many innocent business owners will end up closing their doors. "Hundreds of small businesses in these towns, who have bought and paid the municipality for the electricity they have used, will now be forced to close shop because the municipality did not pay the money over to Eskom." 

Basic services are also affected when there is no electricity to power pumps for water and sewage. Cellphone reception is lost in Jansenville while hospitals and police stations are forced to rely on generators.

Last Friday, the Advertiser spoke to some Jansenville residents, and without exception, there was great anger that the municipality appears to have squandered (or at best, diverted) money that consumers have paid for electricity. Those with old meters have had to pay in cash for electricity in advance - they cannot use bank cards or make electronic transfers. 

“Residents are being punished for the municipality’s mismanagement,” said one businesswoman. “I have paid for electricity in my meter, but I can’t use it, and I cannot process credit card transactions as there is no cellphone signal.”

Leone Muller, manager at Huis Welverdiend for the aged, was clear in her condemnation of the municipality. “Several of our residents are infirm, and cannot be expected to make their way to the bathrooms by torchlight,” said Muller. To keep their generator going for 14-hours would cost well over R1 000 in diesel every day, and if there are patients on oxygen or other life support, this will have to be done, even during daylight hours.

Muller has asked Afriforum to intervene and to somehow force the municipality to reach an arrangement with Eskom.

A request has been sent to the municipality for information from the report of 27 March, and the promised update for the community, but no response had been received at the time of going to press.

DA calls emergency meeting
The DA convened an emergency caucus meeting in Willowmore on Monday. The party has been asking the municipality since last year to ring-fence the electricity income and to pay Eskom what is due each month. They were advised that this is not possible as the money is needed to fund other services. DA caucus leader, Cllr Samantha Graham, stated that one of the reasons why the DA refused to accept the Adjustment Budget, was because there was no report on, or arrangement in place with Eskom. The ward 12 Councillor, Danie Bezuidenhout, took a petition signed by Steytlerville residents to Council in the latter part of 2018, when the threat of cuts was looming. “Throughout the entire process, the Mayor and MM advised us they are busy with negotiations and would do everything in their power to avoid electricity cuts,” said Cllr Graham. “That clearly hasn’t worked.”

“The DA is consulting with residents of the affected towns, as well as in Graaff-Reinet, to determine a way forward,” she continued. “The municipality has been unable to resolve the issue, so it now becomes the duty of civil society and the opposition to do so."

Bloated administration
On Monday afternoon, the Mayoral Outreach meeting in Willowmore became extremely heated. People demanded to know why they should be made to suffer for the failure of the municipality.Many complained that even though they pay their electricity accounts every month, the money is not being used to pay Eskom. 

People from all areas and all political parties expressed their disgust at the state of affairs, with some asking what action can be taken against the municipality for their losses. Businesses are losing a lot of money, and the threatened cuts later this week of 14 hours per day will be disastrous. The general sentiment was that money for electricity is being spent on a bloated administration, and that those salaries are costing the residents way too much.

Mayor Deon de Vos said more information should be available by Thursday.

No cuts in Graaff-Reinet and Aberdeen

Read a previous article: Eskom reaches agreement with Municipality

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