Fourteen municipalities face Eskom agreement deadline with deals unsigned
National Treasury says none of 14 municipalities had signed required Eskom distribution agreements ahead of the 1 September deadline.
Fourteen municipalities face a Tuesday deadline to conclude electricity distribution agreements with Eskom, with National Treasury reporting that none had signed by Monday morning.
The municipalities were given until 1 September to enter Distribution Agency Agreements after falling behind on Eskom payments and failing to meet conditions of the municipal debt-relief programme.
Under the agreements, Eskom can temporarily assist with or take over electricity-distribution functions, including billing, infrastructure maintenance and debt collection, for a fee.
Supply interruptions remain possible
Eskom warned the municipalities in March that it could begin supply-interruption processes if the agreements were not concluded. The utility has continued talks with councils while complying with legal consultation requirements.
In May, Eskom said nine municipalities had obtained council resolutions supporting agreements, although implementation discussions were still under way.
The South African Local Government Association previously sought a six-month extension, arguing that municipalities needed time to assess the contracts and complete public-participation processes.
A National Treasury progress report identifies the agreements as one of the measures intended to stabilise municipal electricity services and address arrears owed to Eskom.
Any interruption would still have to follow applicable legal and regulatory processes. Eskom had not announced a common shutdown date for all 14 municipalities by Monday afternoon.