SALGA response to interrupting bulk electricity supply to the top 20 defaulting municipalities across the country with effect from 5 June 2015
Eskom issued a statement earlier today on their intention to interrupt bulk electricity supply to 20 defaulting municipalities from across the country owing the electricity supplier an amount of R3.68 billion.
This deliberate interruption of electricity supply has major impacts, not only for the municipalities concerned but also for the economy, essential services such as hospitals, clinics, schools, businesses and communities, including those who have paid their utility bills. The ripple on effects should not be ignored, that of unemployment, poverty and the inability of communities to pay for services.
The top 20 defaulting municipalities are amongst those facing structural financial and capacity problems and are already identified by Cooperative Governance and Traditional Affairs (Cogta), South African Local Government Association (SALGA) and National Treasury for support. Continuing to penalize them will not solve the root causes of the problem. Currently South African Local Government Association is in discussions with COGTA and National Treasury about the problem and nature of support required. In particular these municipalities need to be supported to implement their credit control measures so that they can collect their revenue and pay their creditors. We call upon government, business and households to also play their part and pay for the services they use.
We need to find a permanent solution to the bulk electricity and other arrears. We encourage municipalities to pay their creditors, but we also encourage Eskom to provide municipalities with fair terms of payment to avert disconnection and consequences thereof. Mindful of the strategic nature of Eskom as a national asset, SALGA will continue working with Eskom based on our Active Partnering Agreement to find long term solutions.
