According to a recent statement, the Newcastle Municipality has made headway in addressing Eskom’s oversupply to the town and the subsequent costs involved.
As you will recall, Newcastillian News reported on the issue in December 2023 when it emerged that the Municipality owed Eskom R96,593,441.50.
At the time, Newcastle’s Deputy Mayor, Cllr Musa Thwala, clarified that the Municipality bore no fault for this debt. He explained the debt stemmed from Eskom supplying more electricity than needed, billing the Municipality accordingly. This was despite the Municipality not requesting the additional electricity.
According to the Deputy Mayor, Newcastle typically utilised between 98MW and 100MW, while Eskom supplied 125 MW.
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Recognising the potential impact on service delivery and financial stability, the Newcastle Municipality affirmed that decisive action was taken. Now, just over three months later, Newcastle Municipal Manager, Zamani Mcineka, proudly announced the debt’s clearance. This meant the Municipality avoided millions in undeserved costs.
“Eskom reduced the amount of electricity supplied as requested but wanted the Newcastle Municipality to pay R177 million. However, we disputed this decision. The matter was addressed further, and it was decided the Municipality would now pay just over R1000,” stated Mcineka.
With a sizable financial drain removed and the correct electricity supply restored, Mcineka assured if more electricity was needed due to further investments, the Municipality would take the necessary steps to secure it. However, for now, ensuring financial stability remains a priority for enhancing service delivery.
With a financial hurdle overcome and a looming problem addressed, what are your thoughts?
Share your views in the comment section below.
4 Responses
This is a bull dust story. You have to pay what is measured by the kwhr meter and /or the maximum demand meter.
How can you say you want less electricity than Eskom has given you?
You have not understood the article or how Eskom works with municipalities like Newcastle. Maybe read the article again chom.
Will that lower my electricity availability charges or how does it affect the ordinary person on the street with regards to consumption and payment
Watch these guys more loadshedding coming our way or am I reading this wrong my knowledge of electricity is dangerous