City of Ekurhuleni and its R1.6 billion Eskom debt – How will it affect residents?

The MMC of Finance in the City of Ekurhuleni Jongizizwe Dlabathi has accused Eskom of incorrect billing after the power utility threatened to shut down the municipality due to unpaid debt.    

Over the weekend, Eskom published a public notice in the Saturday publications explaining that it had no choice but to place the municipality under prolonged power cuts due to its non-payment of debt.

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The City of Ekurhuleni allegedly owes Eskom R2.6 billion and a further R1.5 billion on its current account.

Ekurhuleni shocked by notice

However, Dlabathi told The Citizen on Monday that the municipality had lodged a dispute on the amount of money Eskom claims to be owed.

“We noted the notice issued by Eskom regarding the outstanding amount. Safe to say that we are committed to service our account, and we have demonstrated this for the longest time,” he said.

Dlabathi said that in late January, Eskom officials met with Ekurhuleni officials. He said the debt, including the city’s payment plans, was discussed in the meeting.

“I am briefed that it was a highly successful engagement to the extent that both parties have found each other in terms of what needs to be done,” he said.

Dlabathi said the City acknowledged its debt to the power utility at this meeting, but he disputed the amount owed.

“We owe Eskom R1.6 billion, which is a current account, the balance of which is the balance that is under dispute because the city is disputing a certain portion of the amount, which is the invoice amount compared to the electricity received,” he said.

He said it was unfair for Eskom to issue a notice while still engaging with the City.

Will residents be affected?

However, he said his office had contacted Eskom to further engage on the matter.

“There is a dispute, and it must be a subject of finding each other in terms of this dispute.

“This has caused unnecessary panic, and this is a public notice. There must be no panic. We do not think there will be any disconnections. There will be a meeting sometime this week. I really do not foresee power outages,” he said.

Challenges facing Ekurhuleni’s rate collection

Dlabathi said the Ekurhuleni is confronted with several challenges that render it unable to meet its financial commitments.

This includes illegal connections, electricity theft and a nonpayment culture among some residents and businesses in Ekurhuleni.

“We have challenges of electricity being stolen illegally and this leads to direct revenue loss. That means what I am supposed to generate compared to what I paid as an expenditure does not equalise this means [that] I distribute electricity for free, leading to a loss,” he said.

Dlabathi said he has also been on extensive road shows to educate residents about the culture of nonpayment and its effects on service delivery.

DA accuses the municipality of financial mismanagement

Meanwhile, the DA has accused Ekurhuleni of being incapable of managing the City’s finances.

“Instead of prioritising residents, those who it is mandated to serve and ensuring its outstanding accounts are paid up, this doomsday coalition chose to pay excessive bonuses to the city manager and head of departments (HOD),” said DA Ekurhuleni caucus leader, Brandon Pretorius.

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