Update

KAROO NEWS - Desperate residents of Willowmore, Steytlerville and Jansenville have been faced with power cuts of nearly seven hours a day for almost a week due to a debt of over R127-million owed to Eskom by the Dr Beyers Naudé Local Municipality (DBNLM). 

This, notwithstanding that most have been faithfully paying their municipal accounts.

Eskom implemented bulk electricity interruptions to the towns on Friday 23 October, stating that the municipality has breached its payment agreement with Eskom. 

"The interruptions will continue until the debt is paid in full or an acceptable repayment arrangement is reached," said Zama Mpondwana, Spokesperson for Eskom in the Eastern Cape.

"The effect of these power outages will be detrimental in each town," Ewald Loock, Portfolio Councillor of Financial Services, told the Graaff-Reinet Advertiser.

This week the towns were without electricity from 06:00 to 09:00 and again from 17:00 to 20:30. This coming Saturday and Sunday, the power outages will be from 08:30 to noon and again from 15:00 to 19:00. 

The municipality filed a court order on 26 October to prevent the power supplier continuing the interruptions. The outcome of this application will be heard in court today, Thursday 29 October. 

Even darker days loom for the towns if an agreement is not reached, as Eskom will implement 13-hour outages starting Monday 2 November. Weekday and weekend outages will be from 06:00 to 20:00.

Eskom vs DBNLM
According to Acting Municipal Spokesperson, Edwardine Abader, DBNLM and Eskom have been battling to find common ground for some time, but to no avail. "The municipality is in dispute with Eskom on matters that have remained unresolved, and cannot enter into an agreement if these disputes are not resolved," said Abader.

The first of these disputes, according to Abader, is that the repayment plan previously agreed upon between Eskom and DBNLM is no longer feasible. "The municipality has not stopped making payments to Eskom, [but due to financial difficulty], of the monthly R12-million due, only R10.5-million was paid over to Eskom for September 2020." Abader said that a redrafted plan has been provided by Eskom, but that this is unaffordable to the municipality.

Loock, speaking as a resident, said locals are frustrated because they pay their electricity accounts, yet the money doesn't reach its intended destination. 

"The big issue is to find a repayment plan that Eskom will accept. Three payment plans were previously drafted, but Eskom rejected it, as Eskom said the payments are too small," Loock explained.

A second issue, according to the municipality, is that the Jansenville power supply point needs to be upgraded. "Various penalties, which cannot be collected from consumers, are implemented by Eskom due to the maximum demand being exceeded," said Abader. According to her, Eskom has requested a hefty deposit for the upgrade, but the municipality cannot afford this.

The last dispute between DBNLM and Eskom surrounds the wheeling agreement between the two entities, which was implemented in March 2018. "Eskom utilises the infrastructure of the municipality to provide electricity to Umaszakhe and Lotusville in the municipal district," explained Abader. According to her, no evidence can be obtained that the municipality was ever repaid for the buyback of the electricity. "However, there is no clarity on what we are supposed to bill Eskom, as this was never formalised," Abader said.

The issue of amalgamation
According to Abader, DBNLM has experienced financial difficulties since its establishment in August 2016, during which time Eskom was one of its main creditors.

Loock believes the former Camdeboo, Baviaans and Ikwezi Municipalities should never have been amalgamated in 2016. "Together, these municipalities do not have a strong tax base," Loock stated. "You cannot put municipalities like this together, it is not sustainable." This issue was highlighted in July this year when DBNLM was identified as being in a 'state of distress' by MEC for Cooperative Governance and Traditional Affairs, Xolile Nqatha.

Cllr Louwrens Nortjé said at the time that the amalgamation caused much of the financial instability. "Insufficient funds were allocated by the government for the amalgamation process, and the inherited debt from Ikwezi meant the new municipality got off to a poor start."

Abader said that Eskom refused to enter into discussions on the writing off of penalties and about interests accumulated since the inception of DBNLM in August 2016.

Residents react
Upset residents gathered at the municipal offices in Willowmore on Monday, demanding to see Mayor Deon de Vos. A video supplied to the Advertiser shows community members in EFF attire preventing De Vos from accessing the municipal building. De Vos then grabs one of the men by the chest, trying to pull him aside. De Vos later leaves the premises. Loock said community members, representing various parties, gathered again on Tuesday. "Poor households are struggling and community members want to be heard," Loock said.

"Our town has no electricity and there's nothing we can do. We don't know who can help us," says Chairperson of the Willowmore Business Chamber and Tourism Organisation, Jane Zayman.

At Willowmore Provincial Hospital, where Covid-19 patients are also being treated, generators have to be used. Business owners say the power cuts have already had a negative effect on business. "No power means no business," says Saisur Rahman, owner of Smart Shopper. "I have lost many customers, and warm weather means our frozen food will go to waste."

Willowmore guesthouse owner, El-Anne Smith, says some visitors have demanded discounts because of the power outages. "To make matters worse, our town's water is shut off from 10:00 until 16:00 to save water," she explains.

Zayman said a criminal complaint against the municipality for mismanagement has been filed with the Willowmore SAPS. Sias Smith of the Graaff-Reinet Action Committee said on Wednesday that Jansenville residents also plan to gather, to demand answers from De Vos.

Previous article: Karoo towns without power due to municipal debt

'We bring you the latest Karoo news'