ELM payment plan for Eskom debt on track for deadline
ELM is on track to submit its new payment plan for outstanding R2,3 billion Eskom debt and will meet the extended deadline for submission on Friday this week.
An amicable, sustainable and affordable payment plan is seen as of utmost importance by the Golden Triangle Chamber of Commerce (GTCoC) for not only electricity security of supply to the Vaal, but for the post-Covid economic recovery of the region.
Should talks break down between ELM and Eskom on the repayment issue, the municipality faces yet another round of asset seizure – leading to a complete stand-still in all forms of service delivery.
ELM Municipal Manager Lucky Leseane confirmed to VaalWeekblad that a new payment plan would be submitted to meet Friday’s extended deadline this week.
Klippies Kritzinger, CEO of the GTCoC welcomed that ELM would submit a new payment proposal on time but has also appealed to Eskom for an economically and socially sustainable resolution to the issue.
Kritzinger also praised Leseane’s commitment to a transparent approach and taking stakeholders and the public into his confidence throughout in dealing with the Eskom crisis.
Kritzinger added that Leseane’s approach was building confidence in ELM and its credibility.
“Service delivery will underpin all initiatives aimed at Vaal economic recovery and prosperity and so we need stability of electricity supply to the Vaal as soon as possible.
“The GTCoC also fully supports ELM and Mr Leseane in finding a sustainable and affordable solution to this issue which has destabilised the Vaal well before even Covid-19 and Mr Leseane’s appointment,” said Kritzinger.
However, the new plan will not be submitted directly to Eskom, but to COGTA (Cooperative Governance and Traditional Affairs) MEC Lebogang Maile, who is facilitating the process of reaching a deal between ELM and Eskom.
ELM’s latest proposal will still be assessed by Eskom which is also expected to then either accept or make a counter-proposal of its own.
In the first round of proposals, Eskom countered an eight-year payment proposal by ELM with a shorter five-year repayment proposal – both proposals were also referred to MEC Maile initially for consideration, leading to the present round of proposals and extended submission deadline.
ELM has already defaulted twice before on Eskom repayment plans – last year the national utility provider threatened a bulk cut-off of electricity to ELM and earlier this year had the municipality’s assets attached and seized.
The issue prompted ELM Executive Mayor Gift Moerane to announce he would be establishing a Mayoral Advisory Board with business stakeholders – to date business representatives have been invited but the structure has not yet formally been set up.
