An agreement between the Raymond Mhlaba Municipality in the Eastern Cape and Eskom will see the lights staying on in towns in the newly amalgamated Municipality.
Executive mayor, Bandile Ketelo, said that the municipality's power supply will not be interrupted and the municipality's cash flow will continue to sustain the provision of basic services.
Three Eastern Cape Municipalities owe Eskom more than R200m in outstanding payment.
Eskom had warned that it would cut the power supply to the three municipalities on Friday.
But, in a brief statement on Thursday said that they had “successfully concluded a payment plan with Eskom to service the inherited arrears owed to the power utility.”
“The municipality’s power supply will not be interrupted and the municipality’s cash flow will continue to sustain the provision of basic services,” he said.
Eskom spokesperson, Khulu Pasiwe, said they had concluded payment agreements with the Walter Sisulu Municipality.
However, negotiations with a third Eastern Cape Municipality, Inxuba Yethembe, continued into Thursday night.