KEY POINTS
- Eskom and Maluti-a-Phofung signed a 15-year agreement to restore financial and technical stability.
- Post-paid customers will pay Eskom directly for electricity, ensuring a stable revenue stream.
- MAP staff will receive training and upskilling in network management as part of the recovery plan.
Restoring the sustainability of the power supply in the Free State’s Maluti-a-Phofung local municipality (MAP) is a work in progress.
This happened after an unusual eight-year contract between Eskom and MAP was struck to regain the municipality’s financial and technical sustainability.
Through the agreement, MAP can continue offering energy to its clients as a basic service and pay Eskom for bulk electricity.
According to ESI-AFRICA, a joint press release describing the municipality and the electricity provider stated that post-paid customers will receive bills and should deposit money straight into Eskom’s bank account. Also, MAP employees will receive upskilling and training in network management and operation.
This cooperative effort, which started as a Distribution Agency Agreement (DAA) between Eskom and MAP, sets a standard for future partnerships with state-owned enterprises.
Prospects and training for Maluti-a-Phofung staff
The deal, which is 15 years in length, aims to collect income, pay off MAP’s outstanding debt to Eskom, guarantee a steady supply of electricity, transfer knowledge and skills, and assist the municipality in getting back on its feet in the provision of electricity.
The case began in 2021 when Eskom was designated by the North Gauteng High Court to serve as the service delivery agent for the energy business of Maluti-a-Phofung Municipality.
Restoring the technical and financial stability of Maluti-a-Phofung Brenda Cebekhulu, Senior Manager for Asset Creation at Eskom and Chair of the Project Management Office for the MAP DAA, said all streams have been identified and are meeting regularly to discuss activities connected to the streams.
“On the ground, technical teams are evaluating the necessary work and creating solutions for the municipality’s network problems.
Retail streams are focusing on improving customer service, revenue collection, and system improvement through the use of temporary fixes while permanent ones are being implemented. “Materials are being sourced to repair installations, and the first batch of customers has been linked to the Eskom system for revenue collection,” she stated.
Customer payments and revenue collection system updates
To guarantee a seamless transition to the Eskom vending system, MAP and Eskom personnel reviewed meters in Kestell over three days, according to Acting Municipal Manager Amos Goliath of MAP.
“On September 5, 2024, a community meeting was convened to accelerate this procedure. After this migration is finished, which should happen in the next two weeks, all Kestell electricity customers should be able to purchase electricity straight from Eskom. Soon after, Harrismith and QwaQwa would follow,” he declared.
