/ 1 May 2003

Eskom writes off R 1,39bn in arrears

Eskom has agreed to write off R1,391-billion in arrear payments owed to it in the greater Johannesburg area, the electricity parastatal said on Wednesday.

This agreement with the SA national Civics Organisation (Sanco) brings to an end a long drawn-out dispute between Eskom and residents of predominantly poor areas.

Eskom spokesperson Fani Zulu said the debt to be written off was incurred between September 31, 2001 and April 30, 2002, and was part of R2,4-billion owed to Eskom countrywide.

Debt incurred from May 1, 2002 onwards must be repaid under the agreement, but no interest will be charged. The payments are to be spread over 20 months.

”Customers will be expected to pay their current account and a portion of the payment plan,” Zulu said.

Sanco president Mlungisi Hlongwane said the accord ”goes a long way in dealing with the concerns of residents”.

Eskom has in the past resorted to power cutoffs to enforce payment, but this only heightened tensions with the public.

Hlongwane said Sanco was negotiating with the departments of Minerals and Energy and of Public Enterprises for a free basic electricity supply to the poor.

Areas covered by the agreement include Soweto, Sebokeng, Bophelong, Boipatong, Kagiso, Bekkersdal, Daveyton, Vosloorus, Wadeville and Katlehong. – Sapa