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Why we can't pay Eskom: Top ten defaulting councils share financial horror stories

daveza

Honorary Master
Joined
Apr 5, 2004
Messages
33,046
#1
https://www.fin24.com/Economy/Eskom...ncils-share-financial-horror-stories-20180613

Spiralling debt, compounded revenue losses, a chain of non-payment and 'ghost vending' – these were just a few of the issues listed when Parliament's Standing Committee on Public Accounts heard from the municipalities not paying their debts to Eskom.

The top ten defaulting councils were in the hot seat before Scopa on Wednesday morning, explaining why they continually failed to settle their debts to the embattled power utility.

They cited structural challenges in their own financial practices as well as historical financial constraints. They also blamed their own communities for refusing to pay power rates, and in some cases, said the parastatal had unrealistic expectations of their ability to pay their debts.
<comments removed>
 
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The_Librarian

Another MyBB
Super Moderator
Joined
Nov 20, 2015
Messages
18,561
#2
Those councils concerned - do tell me what kind of car the mayor drives, and what other perks is present in the renumeration package for employees.

Also what other expenses do they have.

And have they started to address the issue of unwanted overheads yet, and if not, why not?
 

f2wohf

Honorary Master
Joined
Apr 15, 2014
Messages
14,698
#3
Not once in the article do they mention cutting off electricity.

Don't pay, continue to get electricity - how difficult is it to understand that this is not a solution.

If I don't pay I will be cut off so why are the rules different.
Some have been cut, at least with artificial loadshedding (Witbank, Thaba Chweu...). Didn't help pay the debt since they have no money to pay the debt.

The issue with cutting the electricity is that it really affects the residents who pay, destroys the economic activity and produces nothing good for the future.

The issue is that some serious projects have been launched to remedy to this situation but the Municipalities, their inefficiencies and their political infighting have killed all hopes of private solutions.

Councillors themselves (and not ANC for once) don't pay their electricity bills in some of these Municipalities.
 

Polly101

Senior Member
Joined
Nov 7, 2011
Messages
655
#4
Those councils concerned - do tell me what kind of car the mayor drives, and what other perks is present in the renumeration package for employees.

Also what other expenses do they have.

And have they started to address the issue of unwanted overheads yet, and if not, why not?
don't bring your logic here!
 

Scooby_Doo

Executive Member
Joined
Sep 4, 2005
Messages
5,925
#5
https://www.fin24.com/Economy/Eskom...ncils-share-financial-horror-stories-20180613



Not once in the article do they mention cutting off electricity.

Don't pay, continue to get electricity - how difficult is it to understand that this is not a solution.

If I don't pay I will be cut off so why are the rules different.
Illegal connections, 3rd party vendors not paying, people not paying. It wouldn't take much for relatively small municipality to get overwhelmed. Then you have to understand that by killing electricity you will punish people who are paying as well as the non-payers.
 

Sl8er

Executive Member
Joined
Aug 12, 2010
Messages
6,753
#6
Then you have to understand that by killing electricity you will punish people who are paying as well as the non-payers.
1. Cut the power...
2. Inform the people that power will be restored once the illegal power thieves disconnect...
3. Wait for a little mob-justice to do its thing...
4. Restore power....

:whistling:
 

f2wohf

Honorary Master
Joined
Apr 15, 2014
Messages
14,698
#7
1. Cut the power...
2. Inform the people that power will be restored once the illegal power thieves disconnect...
3. Wait for a little mob-justice to do its thing...
4. Restore power....

:whistling:
Has been done.

Has not worked because as soon as a campaign of disconnection is finished, the thieves reconnect.

The other issue is the lack of electrical management of the notified maximum demands for example which incurs millions of Eskom penalties per month for some municipalities.

There are simple solutions which cost 1/1.5 million and would avoid any penalty but the municipalities are always "we have no money" instead of taking a hit in their budget for a little while to save tens of millions a year.

Not even speaking of the technical losses either.
 

ForceFate

Honorary Master
Joined
May 18, 2009
Messages
11,625
#8
1. Cut the power...
2. Inform the people that power will be restored once the illegal power thieves disconnect...
3. Wait for a little mob-justice to do its thing...
4. Restore power....

:whistling:
Would you go disconnect illegal connections if they were to switch off your area? How would you tell?
 

Sl8er

Executive Member
Joined
Aug 12, 2010
Messages
6,753
#10
Would you go disconnect illegal connections if they were to switch off your area? How would you tell?
If I knew, sure, but I get what you're saying.
Unless everybody is in everybody else's business all the time, how would you be able to tell who's "legal" and who's not.


* Side note: What I posted was more in jest than anything else :)
 
Joined
Nov 14, 2007
Messages
3,864
#12
One vote One Kilowatt !

STRANGE
That these "problems" ONLY seemed to appear AFTER "democracy"
Sure in the "old days" there were small "problems" here and these
BUT
Eskom managed to provide power at affordable rates AND municipalities PAID their bills
Granted not EVERYONE had electricity
HOWEVER ....
Those that DID -- DID PAY FOR IT !
 
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ArtyLoop

Expert Member
Joined
Dec 18, 2017
Messages
2,621
#13
STRANGE
That these "problems" ONLY seemed to appear AFTER "democracy"
Sure in the "old days" there were small "problems" here and these
BUT
Eskom managed to provide power at affordable rates AND municipalities PAID their bills
Granted not EVERYONE had electricity
HOWEVER ....
Those that DID -- DID PAY FOR IT !
I hope you are not longing for the old days..
I for one am glad those days are gone. I couldn't quite frankly handle the BS of the former regime and wanted to leave SA.
 

supersunbird

Honorary Master
Joined
Oct 1, 2005
Messages
44,327
#14
I hope you are not longing for the old days..
I for one am glad those days are gone. I couldn't quite frankly handle the BS of the former regime and wanted to leave SA.
Well, then you should hope that Eskom wins in court against Nersa and get their 19% increase so that you and the rest of us can subsidize the non payers.
 

ArtyLoop

Expert Member
Joined
Dec 18, 2017
Messages
2,621
#15
Well, then you should hope that Eskom wins in court against Nersa and get their 19% increase so that you and the rest of us can subsidize the non payers.
Hmmm... why would I want that. I was referring to the other person's assertion that apartheid was b etter or things were better under apartheid.
 

f2wohf

Honorary Master
Joined
Apr 15, 2014
Messages
14,698
#16
Well, then you should hope that Eskom wins in court against Nersa and get their 19% increase so that you and the rest of us can subsidize the non payers.
Because the two options are:

1. Back to apartheid
2. Grant Eskom 19.9%?

You really can’t think of anything else?
 

access

Executive Member
Joined
Mar 17, 2009
Messages
7,195
#17
STRANGE
That these "problems" ONLY seemed to appear AFTER "democracy"
Sure in the "old days" there were small "problems" here and these
BUT
Eskom managed to provide power at affordable rates AND municipalities PAID their bills
Granted not EVERYONE had electricity
HOWEVER ....
Those that DID -- DID PAY FOR IT !
you forget, the opportunity to excel at something or create a respectable household or was not promoted as much as giving people everything for free.
 
Joined
Nov 14, 2007
Messages
3,864
#20
Nostalgia

I hope you are not longing for the old days..
I for one am glad those days are gone. I couldn't quite frankly handle the BS of the former regime and wanted to leave SA.
Of COURSE I long for the "old-days"

I grew up as a privileged white person in a country where EVERYTHING worked
and
Where crime was unheard of and non-existent
Where one could travel safely and freely -- at 40c a GALLON
Where corruption was minimal and involved millions NOT BILLIONS
When South Africa was nearly -- paradise.

I feel VERY sorry for people that never experienced what it was like to live a happy and normal life
( As understood by people used to a FIRST WORLD advanced technical western democratic CIVILISATION )

Sure this might have been unpleasant for others .......
However
"They" have now had more than twenty years of [-]running[/-] ruining the country according to "their" particular ideas of how things should be done -- as in the rest of the "Dark-Continent" -- apparently -- turd world shyte-holes
 
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