KZN: Newcastle Municipality settles debt with Eskom
Power utility Eskom, has praised Newcastle Municipality in settling it’s debt in full. The Municipality paid a settlement fee of over R127million with a month to spare. ALSO READ: From Eskom to Rand Water – City of Tshwane ‘drowning’ in debt SETTLEMENT AGREEMENT WAS FACILITATED THROUGH COGTA KZN Eskom says the amount paid over by the municipality […]
Power utility Eskom, has praised Newcastle Municipality in settling it’s debt in full. The Municipality paid a settlement fee of over R127million with a month to spare.
ALSO READ: From Eskom to Rand Water – City of Tshwane ‘drowning’ in debt
SETTLEMENT AGREEMENT WAS FACILITATED THROUGH COGTA KZN
Eskom says the amount paid over by the municipality is the largest settlement amount it’s received by a large margin.
“Eskom is grateful for the thorough way the Municipality has conducted itself during the tenure of the debt. This is evident of the fact that the payment arrangement has been settled ahead of the targets of the agreement” says Eskom’s Industry Support Management, Joyce Zingoni.
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MUNICIPALITY SETS THE BAR HIGH
General Manager Central East Cluster, Agnes Mlambo lauded the Municipality for being proactive in the commitment in settling the debt and wished other municipalities could follow suit.
“The Municipality communicated any concerns and challenges proactively to Eskom and this in turn allowed for further discussions to keep the payment arrangement conditions intact” says Mlambo.
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Eskom says the settlement allows the entity to be self sustainable as costs of electricity generation, transmission and distribution to be recovered.