Eskom and the Maluti-a-Phofung Municipality (MAP) are collaborating in an eight-year agreement to restore the municipality’s electricity supply sustainability by improving revenue collection, settling debt and upgrading infrastructure.

The project, with the possibility of extending to 15 years, seeks to address the technical and financial challenges faced by MAP and thus ensure reliable electricity supply for residents.

The initiative follows the distribution agency agreement (DAA) signed in May when Eskom officially assumed control of the distribution and billing. MAP owes Eskom a substantial R8 billion as of July this year. Since the agreement’s inception, Eskom has been working closely with MAP to address challenges in restoring the municipality’s financial and technical health.

The agreement focuses on several key areas: improving revenue collection, settling outstanding debts, ensuring consistent electricity supply and facilitating skills transfer to bolster the municipality’s operational capabilities. Under this arrangement, MAP’s post-paid customers will now make payments directly into Eskom’s bank account, simplifying the revenue collection process. Additionally, MAP staff will receive training to manage and maintain the electricity network.

A joint Project Management Office (PMO), chaired by the Department of Cooperative Governance and Traditional Affairs, has been established.

“Technical teams are on the ground assessing the work needed and developing solutions for the network issues faced by the municipality. Retail streams are working on enhancing revenue collection and customer interaction and implementing interim solutions to improve systems while transitioning to permanent solutions. Materials are being sourced to repair installations and the first batch of customers has been linked to the Eskom system for revenue collection,” said Brenda Cebekhulu, Eskom’s Senior Manager for Asset Creation and Chairperson of Eskom’s PMO for the MAP DAA.

The next step in implementing the DAA is to migrate MAP prepaid customers to the Eskom vending platform, allowing them to purchase electricity directly from Eskom.

“We conducted a three-day joint operation when Eskom and MAP officials audited meters in Kestell to ensure smooth migration to the Eskom vending system. This migration should be completed in the next two weeks, enabling all Kestell electricity users to buy directly from Eskom. QwaQwa will follow soon,” said Amos Goliath, Acting MAP Municipal Manager.