The Sol Plaatje Municipality has refuted claims by the CEO of Eskom, Andre de Ruyter, that it is charging a 121 percent mark-up on the sale of electricity.
THE SOL Plaatje Municipality has refuted claims by the CEO of Eskom, Andre de Ruyter, that it is charging a 121 percent mark-up on the sale of electricity.
The EFF and ACDP noted during a council meeting earlier this week that, according to the calculations, it was indeed 121 percent.
Council wants to summon De Ruyter to Kimberley as it stated that it was making it difficult for them to canvas for annual electricity tariff increases.
Acting municipal manager, Lydia Thekiso, believed that De Ruyter was making these representations in his personal capacity.
“We would like to challenge him on his utterances. I will have a meeting with him as he is defaming the Sol Plaatje Municipality. He should feel sorry for the trouble that his statements are causing.
“The former mayor, Patrick Mabilo, invited him to meet council but he did not oblige and sent regional officials in his place. Eskom is threatening legal action to attach the assets of the municipality and bank account to recover outstanding debt.”
She added that the basic, capacity and demand charge would be included in the municipal account and would not be deducted from electricity purchases.
Thekisho pointed out that, in anticipation of the municipality making R19,9 million less than projected, after council approved a 4,5 percent electricity tariff increase, as opposed to the initial 6,82 percent, the municipality would have to recover the deficit elsewhere.
“The municipality will have to work hard to recover losses. We will cut the power supply of state departments, businesses and households who are in arrears for more than 90 days, without exception. National Treasury made it clear that we are on our own and that they are working with Eskom to recover outstanding monies from municipalities.”
EFF councillor Kenneth Kok added that ordinary citizens did not understand the technicalities of the breakdown of the electricity tariffs.
“Households will have to choose if they want to use the washing machine or clean the yard.”
ACDP councillor Roddy Loff believed that a middle man was being used as electricity bulk purchases were made at R1,46 but were sold at R2,68.
“We do not hear how the municipality is dealing with electricity losses or recovering debts.”
EFF councillor Pontsho Mocwana stated that the municipality was indeed making a 121 percent profit on the sale of electricity.
“The municipality must adhere to the price ceiling imposed by the National Energy Regulator of South Africa (Nersa) if you check the calculations.”
