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An Eskom logo is seen at the entrance of their head offices in Sunninghill, Sandton.
Eskom and Merafong City Local Municipality in Carletonville on Gauteng’s West Rand have signed a Distribution Agency Agreement. It’s aimed at stabilising electricity distribution and improve service delivery.
Under the agreement, Eskom and the municipality will jointly manage the distribution of electricity. Billing and revenue collection will be ring-fenced and administered by Eskom.
The free basic electricity will be disbursed directly by Eskom to qualifying indigent households.
The City’s spokesperson Thabo Moloja says the agreement forms part of the municipality’s broader turnaround strategy to improve operational efficiency and restore public trust.
“It is a known issue that Merafong owes Eskom more than R1 billion in terms of the money that is due to Eskom. And Merafong is unable to collect enough revenue as a result of a number of challenges, aging infrastructure amongst others, the growing demand for electricity as we are building more houses for our people, and as a result we have not been able to catch up.”
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