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Eskom and Phumelela Municipality join forces for financial sustainability
Friday, 20 October 2017: Eskom and the Phumelela Municipality in the Free State yesterday demonstrated how intergovernmental institutions can collaborate in improving South Africans lives.
  
 
In its quest to curb municipal debt, Eskom approached the Phumelela Municipality with active partnering initiatives that would secure the financial sustainability of the municipality.  The primary initiative includes the conversion of all municipal customer meters to split prepaid meters. 
 
The partnership implementation launch, led by Mr. Thys Moller, General Manager, at Eskom, and Councillor John Motaung, Mayor at Phumelela Municipality, was held yesterday in Warden and Ezenzeleni with the full participation of the community.  The Service Level Agreement, the first of its kind in the country, was signed by both parties in Bloemfontein on 15 June 2017. 
 
Through this relationship, customers’ meters will be converted to split prepaid meters over a period of three months. This will not only result in effective revenue recovery and reduced outages, but will empower customers as they will be in charge of how much they want to spend.  Customers will also have the convenience of purchasing tokens 24 hours a day through various channels, which include cell phone banking, ATMs and convenience stores. In addition, the collaboration will result in economic growth, which will uplift the Phumelela community.
 
This is the first of a few pilots we have identified and we look forward to strengthening our partnership in our quest to reduce municipal debt.
 
 
ENDS