CEO Sipho Mosai emphasised that the livelihood of Rand Water was a revenue base that they generated from their customers.
“We really don't want a confrontational situation between us and them [municipalities],” he said, adding that there was a need for negotiation even with municipalities that were in financial trouble. Negotiations were not about arranging to pay off debts but also to honour their agreements.
“You cannot say you are committed to paying your debt but then do not honour your agreement. If Rand Water collapses, this country will see a crisis that it has never seen before,” he said.
Rand Water COO Mahlomola Mehlo said the entity was well aware of the issues of electricity instability from Eskom but has plans to stop total reliance on the electricity utility.
He said 70% of Rand Water's power supply comes from Eskom and though they are predominantly exempted from load-shedding when it gets to stage four and higher, it does have a knock-on effect on their system.
“We have our own plans. We have bought huge mobile generators that are being installed as we speak. However, they are not big enough to get us off the grid,” he said.
He added that the utility was considering renewable and solar energy as alternatives.
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Rand Water determined to turn the screws on delinquent municipalities
Image: 123RF/maridav
Rand Water on Wednesday vowed to use all available credit management measures at its disposal to collect the money it is owed by nonpaying municipalities.
The chair of Rand Water, Ramateu Monyokolo, said the entity has to protect its financial stability. He said it has been working with the municipalities that have financial challenges — such as Tshwane — to establish payment arrangements.
“We have written to many municipalities saying that it is our intention to use our credit management measures to ensure that we receive what is owed to Rand Water,” he said.
He was talking during Rand Water’s press briefing on Wednesday afternoon.
CEO Sipho Mosai emphasised that the livelihood of Rand Water was a revenue base that they generated from their customers.
“We really don't want a confrontational situation between us and them [municipalities],” he said, adding that there was a need for negotiation even with municipalities that were in financial trouble. Negotiations were not about arranging to pay off debts but also to honour their agreements.
“You cannot say you are committed to paying your debt but then do not honour your agreement. If Rand Water collapses, this country will see a crisis that it has never seen before,” he said.
Rand Water COO Mahlomola Mehlo said the entity was well aware of the issues of electricity instability from Eskom but has plans to stop total reliance on the electricity utility.
He said 70% of Rand Water's power supply comes from Eskom and though they are predominantly exempted from load-shedding when it gets to stage four and higher, it does have a knock-on effect on their system.
“We have our own plans. We have bought huge mobile generators that are being installed as we speak. However, they are not big enough to get us off the grid,” he said.
He added that the utility was considering renewable and solar energy as alternatives.
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