Eskom has officially assumed control of the distribution and billing of Maluti-a-Phofung Local Municipality in the Free State, with the signing of a Distribution Agency Agreement (DAA) on May 7.

Under the agreement, Eskom will reinstate electricity infrastructure within the municipality and provide revenue collection services on behalf of Maluti-a-Phofung.

The DAA aims to address the long-standing electricity supply challenges in the region, such as illegal connections, poor infrastructure, and mounting debt to Eskom.

Eskom will ensure the municipality collects money owed by acting as the municipality’s revenue collection agency and managing metering services while providing technical resources to Maluti-a-Phofung.

The successful implementation of the agreement is expected to serve as a model for dealing with mounting municipal debt owed to Eskom.