With the looming threat of power interruptions hanging over Newcastle like a dark cloud, several Newcastillians took to the streets on September 2, closing off entrances to sections of town before marching to the Newcastle Municipality.
This follows a notice by Eskom, which states that due to Newcastle Municipality owing a staggering R213, 123, 387.95, the power utility has no choice but to shut down the town’s power supply.
With the power interruptions set to take place from September 30, the KwaZulu-Natal government is urgently trying to avert electricity interruptions.
On Monday, September 2, Cooperative Governance and Traditional Affairs (Cogta) MEC Sipho Hlomuka urged residents “to pay for municipal services, including electricity. He claims as their failure to do so puts massive tension on the diminishing finances of municipalities”.
Adding fuel to the fire, he allegedly claims business and consumer electricity debt was the main reason for escalating costs.
He says the challenge Newcastle Municipality faces, is one faced by many municipalities across the country. Stating it is the failure by residents, including businesses, to keep up to date with their utility bills.
Hlomuka adds that while the government is committed to working with municipalities to find a solution, residents must make it a priority to pay for the respective municipal services.
He further urges municipalities to implement stringent measures to recover lost revenue. This includes fining or prosecuting people who have illegal electricity connections.
With the power interruption set to have major negative implications for the town’s economy, Hlomuka says the power outages will impact jobs and potential investors, investing in Newcastle.
Hlomuka claims he directed senior Cogta officials to facilitate engagements with Eskom to find a lasting solution.
However, this is not the first time Newcastle Municipality has owed a substantial sum of money to Eskom. In March 2018, it was reported the municipality owed the power utility a staggering R74 million.
Former Newcastle Mayor, Makhosini Nkosi, said at the time a large portion of this debt was from South African Calcium Carbide (SACC).
At the time of the publication of the article, “We as the municipality only owed R26 million, as R50 million is from SACC. While we have until July to pay the outstanding monies, we have already made payment towards the account.”
Former Cllr Nkosi assured taxpayers at the time that they had nothing to worry about, saying funds from the Equity Whole Share would be used.
Hopefully, we will see our town’s leaders take care of this concerning challenge.
Also read: Newcastle Municipality owes Eskom a staggering R74 million. We are in trouble
However we do know, Generator and Solar sales are going to go through the roof. Who knows, we could see Newcastle, evolving from a polluted town into a Green, renewable energy toting little city.
All we know is that South Africans find opportunity in challenges, hopefully this is one of moments.
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