Eskom acknowledges payment extension decision for defaulting municipalities

20th January 2017 By: Megan van Wyngaardt - Creamer Media Contributing Editor Online

Eskom has welcomed Public Enterprises Minister Lynne Brown’s decision to grant municipalities until the end of January to settle their arrear debt with the power utility.

Brown on Thursday instructed the parastatal to allow municipalities until January 31 to settle arrears before switching off the lights, as it would hurt businesses and jobs.

Municipalities across the country collectively owed more than R10-billion to Eskom.

“[The request] is consistent with the compassion we have demonstrated since the start of our engagements with the municipalities,” the power provider said in a statement.

It added that the time afforded to the owing municipalities could help it close the gap in the arrear debt, if it obtained further participation. “We have witnessed encouraging cooperation; we hope we are able to fully resolve the matter by the end of the allocated time,” it said.

To date, 21 out of the 34 defaulting municipalities have signed payment plans with Eskom or paid their debts.