Eskom writes off a third of Sol debt as part of debt relief programme

Eskom has been instructed to write off R248.1 million off Sol Plaatje municipality's books, as part of national Treasury's Eskom debt relief programme. 

Sol Plaatje municipality spokesperson Thabo Mothibi said this amounted to a third of the debt owed to Eskom. 

"Once this amount is deducted during the first week of September this year, the municipality will owe Eskom just over R1 billion." 

He indicated that households currently owed the municipality R2.6 billion for electricity services, followed by R783 million that was owed by provincial government and R715 million that was outstanding from businesses. 

Municipal manager Thapelo Matlala said they were committed to adhering to the debt relief programme for the next two years.

"The first debt write off is good news. However we have been cautioned to put a sharp focus on electricity, water, refuse and sanitation tariffs as trading services being cost reflective and we must strengthen our debt collection efforts to avoid being removed from the programme."

He added that four debt collection companies had been appointed to recoup monies owed for services rendered. 

Matlala stated that Upsurge Construction and Projects, Ntiyiso Consulting, New Integrated Credit Solutions, and Alpha Collections would be contracted over the next 36 months to recover debts. 

"We have an obligation to ensure that credit control measures are applied fairly and equitably in addressing the shortfalls relating to our daily collection rate.  We are still battling to meet the target of R11 million. We are still emerging from a Winter season of high electricity demand." 

He indicated that the R95 million that would be received to settle the outstanding rates and taxes of provincial government that was committed by the Department of Roads and Public Works would be directed to decreasing the Eskom debt.