Eskom concerned about Lesedi municipality's electricity debt

10 October 2022 - 17:21
subscribe Just R20 for the first month. Support independent journalism by subscribing to our digital news package.
Subscribe now
Eskom says the failure by the Lesedi local municipality to pay its electricity account is making it difficult for the power utility to continue with its supply mandate. File photo.
Eskom says the failure by the Lesedi local municipality to pay its electricity account is making it difficult for the power utility to continue with its supply mandate. File photo.
Image: Freddy Mavunda / Business Day

Eskom says the Lesedi local municipality in Gauteng has failed to honour its August account due on September 28, taking its debt to R112m.

“This is inclusive of the R86m arrear amount. The compounding debt emanates from the zero and short payments since June 2022, when the local authority short-paid its account of R58m, made up of current and arrear amounts from the preceding months.

“The municipality made another short payment of R21m on July 15,” Eskom said.

Lesedi was billed R72m for July, which was due on August 26.

The municipality failed again to honour its obligation and no payment was made.

On August 29, Eskom billed the municipality R116m, including the June arrears amount and the full July account, with the municipality paying only R30m by September 14.

“Eskom is concerned about the payment patterns by the municipality as this is contrary to its previous impeccable payment record.

“The power utility has had several engagements with the Lesedi management team to get the municipality to service its account without much success.”

Eskom said it is complying with the Electricity Supply Agreement (ESA) signed by both parties as it continues to supply the municipality with electricity to meet its obligations to its customers.

“Regrettably, Lesedi has failed to meet its end of the agreement in breach of the ESA, making it difficult for Eskom to continue with its supply mandate.”

TimesLIVE

Support independent journalism by subscribing to the Sunday Times. Just R20 for the first month.


subscribe Just R20 for the first month. Support independent journalism by subscribing to our digital news package.
Subscribe now

Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.

Speech Bubbles

Please read our Comment Policy before commenting.