Eskom lauds Newcastle municipality for paying debt ahead of time

The Newcastle local municipality in KwaZulu-Natal has settled a more than R340m Eskom debt which nearly left the town in the dark three years ago. 

In 2019, residents and businesses faced a blackout after the utility issued a final notice threatening to cut electricity supply. The notice was overturned by the Pietermaritzburg High Court.

Eskom confirmed it had received payment of R127,396,062.71 from the municipality.

The power utility said the full and final settlement of the R342,414,237.95 debt was the end of a successful payment arrangement signed between the organisations.

It said the settlement reflected the potential for success in SA when people and organisations worked together towards a common goal.

Agnes Mlambo, Eskom’s KwaZulu-Natal GM, said the entity was grateful for the thorough and professional way in which the municipality had conducted itself as it managed to settle the debt ahead of the August 15 target of the agreement.

“Eskom would like to acknowledge the dedication and commitment of the municipality in resolving the various challenges over the past three years,” said Mlambo.

“The municipality communicated any concerns and challenges proactively to Eskom and this allowed for further discussions to keep the payment arrangement conditions intact.

“Critically, the promises made were followed through with concrete actions. Without this physical discharge of the commitments made, the conditions of the payment arrangement would have lapsed and Eskom would not have been able to fulfil its side of the equation.”

Eskom was looking forward to other municipalities in a similar position taking a leaf out of the Newcastle municipality's book and similarly discharge their obligations.

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