Eskom has formally invited 11 municipalities in the Free State to enter into Distribution Agency Agreement (DAA’s).
In addition, Tshepiso Ramakarane, Head of Department of Free State Cooperative Governance and Traditional Affairs (COGTA), on the 10 March 2025, met with Eskom and the six municipalities to reiterate the importance of finding mutually beneficial solutions.
Eskom has praised Distribution Agency Agreement (DAAs), as a solution to develop sustainable solutions for municipalities facing electricity-related financial difficulties.
Through the DAAs, Eskom provides various services to strengthen both the technical and financial capacity of municipalities, ensuring the sustainability of electricity provision.
In a statement, Eskom said the agreement also facilitates skills development and training, meter installation or replacement, and revenue collection on behalf of municipalities.
Eskom said it is actively working with defaulting Free State municipalities to resolve outstanding debt following an intervention by the Minister of Electricity and Energy (MoEE), Dr Kgosientsho Ramokgopa, on 17 February 2025.
Various Municipalities in the Free State have received notices in accordance with the Promotion of Administrative Justice Act (PAJA),including the Mantsopa Local Municipality, Masilonyana, Moqhaka, Nala, Ngwathe, and Nketoana Local Municipalities.
As discussions continue, the planned disconnection of bulk electricity supply remains on hold.