Eskom will not be cutting power to the Gariep Municipality which owes it millions of rands in arrears.
That's the word from Eskom general manager in the Eastern Cape, Thys Moller.
"The decision at this point in time is that Eskom has suspended the disconnection of the bulk electricity supply to the Gariep Municipality which would have affected Burgersdorp and Steynsburg," he said.
"It is based on interactions we've had with various stakeholders which included the Local Government Department (in Bhisho) and the Municipality (Gariep)."
"We have received a payment from the Municipality for the current account ending in February 2012 and we have also agreed on an acceptable payment arrangement for the outstanding amount over the next three months which would include interest payments from the municipality," Moller said.
"So, I think that is positive in that there is now commitment. We also need to acknowledge the Department of Local Government which has made a payment of R5.5m towards the total outstanding amount on behalf of the municipality," he added.
Moller said they are now looking forward to a good relationship with the Gariep Municipality.
"Obviously, we now need to monitor to ensure that the commitments that were made that we get the money in as promised."
Moller said the total amount that was outstanding at the time of Eskom starting the process was just over R11m.
"We have received in the order of R6.7m which leaves just over R4.3m that is outstanding. There is now an acceptable payment arrangement between Eskom and the Municipality, with the support of the (Dept) Local Government as well in terms of paying that amount over the next three months," he concluded.
Meanwhile, the civil rights group Afriforum has welcomed Eskom's decision.
The organisation was planning legal action against the power utility in the Grahamstown High Court on Thursday on behalf of the residents of the two towns.
Afriforum's Willie Spies says they were informed Thursday morning that the cut-off has been suspended, but he says they will continue their court action.
"We still believe that it is necessary for the courts to compel the municipality to do their constitutional duty and ensure that the necessary services are being rendered. So, we will in all probability stop the action against Eskom but we will continue against the Municipality," Spies said.
