Energy utility Eskom and the South African Local Government Association (Salga) have signed a memorandum of understanding (MoU) aimed at fostering an active partnership to ensure a cooperative and collaborative working relationship.

The MoU, which was signed by Salga CEO Xolile George and Eskom group executive for distribution Ayanda Noah on the final day of Salga’s two-day national executive committee lekgotla, in Pretoria, on Thursday, would look to solve both electricity distribution industry challenges and specific operational challenges impacting on the reticulation of electricity.

“It is more than a commitment to collaborate, it spells out the nature of active partnering, which includes the establishment of working groups to address specific financial, legal, regulatory, operational and administrative challenges,” Eskom outlined in a statement on Friday.

The parties had also agreed to establish a Programme Management Office comprising Eskom and Salga officials to execute work plans.

The immediate focus would be on planning issues, including alignment between Eskom and municipal plans, technical skills development and rescue plans, when needed.

In terms of skills training, municipalities would be invited to benefit from Eskom’s Academy of Learning and Leadership Institute, particularly on technical and financial issues.

“Salga has committed to taking a robust approach on actions to deal with the various operational challenges that impede the provision of basic electricity services at local level,” the association stated.

Cooperative Governance and Traditional Affairs Minister Pravin Gordhan revealed in Parliament in August that Eskom was owed about R10.85-billion by local municipalities as at the end of June this year.

Gauteng municipalities owed the utility the highest amount, a collective R3.47-billion, with the greater Johannesburg municipality owing R52.97-million, the City of Tshwane R793.35-million and the Ekurhuleni metropolitan council R972.34-million.