Eskom has decided to end discussions about supply area takeovers with the City of Cape Town. In a letter addressed to Mayor Geordin Hill-Lewis, the power utility said it was not in its ‘best interest’ to transfer the assets.
Also read: Eskom cancels talks on transferring supply areas to City of Cape Town
On Monday, Hill-Lewis led a March in Elsies River with residents, in which he said that the City has been ‘asking nicely’ for 18 months or more for Eskom to hand the areas over.
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The City launched a Change.org petition, calling on residents to support Cape Town’s takeover of Eskom supply areas.
‘As the Mayor of Cape Town, I am deeply concerned about the quality of electricity services our residents are receiving in Eskom supply areas,’ Hill-Lewis wrote for the petition.
‘The volume of complaints and the severity of issues reported is alarming. It has become common for power outages to last several days with minimal updates from Eskom, leading to widespread frustration and even protests on our streets.’
‘Our city has a plan to change this situation for the better. We aim to take over electricity services from Eskom in these areas, ensuring reliable services for all residents and putting an end to long blackouts and poor response times that have plagued these communities for too long.’
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In a statement, Eskom explained that a coordinated approach was necessary to address requests from several municipalities to take over areas currently supplied by it.
‘Eskom believes that a coordinated approach is necessary to address them, rather than a haphazard one,’ it said.
‘A standardised approach would be in the best interest of all stakeholders involved. Eskom is committed to adhering to such an approach once it has been agreed upon and formalised through the appropriate governance and legislative processes.’
As of the end of March 2024, Eskom still struggles to recover R74.4 billion of outstanding debt from municipalities.
‘This high level of debt significantly threatens Eskom’s financial stability and operational capabilities,’ it said.
‘The debt crisis has led some municipalities to contemplate severe measures, such as the possibility of Eskom assuming control of their networks or acting as an agency. While the government has launched a debt relief strategy to tackle this issue, it is also evident that a sustainable solution is necessary.’
As reported by News24, the debt-relief strategy is coupled with stringent conditions to avoid the reoccurrence of debt and to establish a culture of payment for services.
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Picture: City of Cape Town / Facebook