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Eskom not planning to scrap further debts-Radebe

22nd May 2003

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Electricity supplier Eskom has no specific plans to write-off any more arrears around the country following its recent decision to scrap debts of R1,4-billion in Gauteng, Public Enterprises Minister Jeff Radebe said yesterday.

Eskom plans to write off arrears from September 2001 to April last year, in an effort to end a dispute with electricity users in Soweto, Ekurhuleni and the Vaal Triangle.

Replying to questions in the National Assembly, he said the decision to write-off these debts was taken on purely business principles after discussions with stakeholders.

Eskom recognised that poor service delivery and a lack of infrastructure had contributed to the problems experienced in these areas.

In making the decision, issues such as the accounts management process, the frequency of meter readings and illegal connections were taken into account, he said.

Radebe also rejected suggestions the move was "discriminatory" towards others, and that Eskom could face legal challenges.

Everyone was entitled to their legal opinion, and Eskom had obtained its own advice.

The write-off was also not selective, as similar action had previously been taken in about 17 other municipalities in the region, Radebe said.

Last week, Minerals and Energy Minister Phumzile Mlambo-Ngcuka said the write-off was in line with a service delivery framework agreed between Eskom and community-based organisations.

"This is not a back-door agreement," she said during debate on her budget vote in the Assembly.

Eskom was also not opposed to discuss debt write-offs in other areas of the country.

"Eskom is willing to talk, but it has to be proved that they actually have the kind of problems that brought Eskom to deal with this issue in the manner in which it has done in the central region," she said. – Sapa.
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