Question NW2732 to the Minister of Public Enterprises

Reply:

According to the information received from Eskom

1. On 27 July 2023, Ditsobotla Local Municipality (the Municipality) and other Eskom customers were affected by a loss of supply due to a pylon that fell onto the 88kV powerline between Watershed Transmission substation to the Lichtenburg Distribution substation.

2. As the fallen structure was being repaired, Eskom observed oil leakages on Transformer 2 at Lichtenburg substation. Upon investigation it was discovered that the transformer was damaged in order to steal copper. As a result, the transformer required replacement.

3. Supply was restored to the substation and surrounding areas via Transformer 1. However, during this period only 10 MVA out of the 17 MVA that is required for peak capacity was available to the municipality to supply its customers.

4. A new replacement transformer was identified in Gauteng, with an estimated cost of R6.9 million inclusive of the transport, installation and commissioning.

5. Transformer 2 was installed but not energised, as the Municipality had not paid its current account in full since April 2022. By way of background, a court order in 2017 ruled for eight (8) applicants who are customers of the Municipality, to pay their electricity bills directly to Eskom. These eight consumers are embedded in the Municipality’s electricity network and Eskom relies on the Municipality, as the co-respondent in terms of the court order, for the availability of supply and billing for electricity.

6. Eskom therefore requested that the Municipality pays for the cost of replacing the transformer, their current account, and three months' accounts in advance before the transformer would be energised.

7. Whilst negotiations regarding payment arrangements were underway, it was discovered that Transformer 1 at Lichtenberg substation was experiencing oil leaks.

8. A decision was taken by Eskom to switch on Transformer 2 and remove Transformer 1 for repairs.

9. Engagements with various stakeholders were held and following the repair and commissioning of Transformer 1, the supply to the Municipality was restored.

10. Eskom confirmed that discussions are continuing with the Municipality, the North-West Province, organised business and other stakeholders to find a sustainable solution for electricity supply to the businesses and residents of the Municipality.

11. There is no evidence of “alleged unconstitutional practices” nor “unethical business practices”.

Remarks: Approved / Not Approved

Jacky Molisane PJ Gordhan, MP

Acting Director-General Minister

Date: Date: