Salga wants brakes on Eskom’s municipal takeover

Court backs due process Dr Beyers Naudè Local Municipality, based in Graaff-Reinet, won a court interdict in June to stop Eskom from cutting electricity supply to three towns after the municipality failed to meet a National Treasury deadline to adopt a council resolution in support of a DAA.

The South African Local Government Association (Salga) has asked National Treasury for six months’ grace for 14 defaulting municipalities that must sign agreements appointing Eskom as their agent to manage their electricity operations before 1 September.5% on all new debt; The municipality may lose access to new National Treasury funding for the installation of smart meters; National Treasury may withhold funding from the municipality; and National Treasury may withdraw all other support to the municipality.