01/06/2019 Possible electricity cuts to hydro plant | Steelburger / Lydenburg News

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Possible electricity cuts to hydro plant

Dark days seem to be on the forefront for the town.

April 11, 2014

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01/06/2019 Possible electricity cuts to hydro plant | Steelburger / Lydenburg News

LYDENBURG – Dark days seem to be on the forefront for the town. This since it has come to light that the
hydroelectric plant will apparently not be operational to supply 2,1MW of electricity to the Glencore Merafe
smelter, Eskom and the town’s grid.

According to a press release from the DA, the agreement between the plant and Eskom was now under
threat as the municipality owed it more than R11,4 million, and has not honoured its agreement service its
debt, which now stands at R168 million.

According to local DA Cllr Farhad Essack, Thaba Chweu was failing to repay the escalating Eskom debt.

“The company MBB Services International is tied up in a three-way agreement between TCM, Eskom and
itself. The electricity provider has indicated that it will not be renewing its contract with MBB Services
International, which runs the plant on behalf of TCM,” said Essack.

“It is common knowledge that the hydroelectric plant situated outside Lydenburg on the Ohrigstad Road is
the property of TCM. Like many other projects, it was given to MBB Services International as a service
provider to run and maintain the plant whereby it would assist Eskom in providing 2,1MV to the municipality,
while also providing electricity for Glencore (formerly Xstrata) which would then be profitable for TCM.

Essack said that due to the contract not being renewed, the effect on Lydenburg would be devastating to say
the least. The press release further stated, “Electricity demand will far exceed supply, and result in regular
power outages in both the CBD and residential areas.

While businesses will lose income, the local economy will contract and no jobs will be created – and harm
investor confidence. Thaba Chweu is wholly unable to provide even the most basic of services to residents,
and the provincial task team has done nothing since October, except sit by and watch how the municipality
is systematically being destroyed by political infighting and factionalism”.

Website
(https://www.facebook.com/Megapaints-
Lydenburg-Burgersfort-
Steelpoort-471371776246161/)

The party said that the governance crisis had to come to an end, and the premier, Mr David Mabuza and
cooperative governance MEC, Mr Simon Skhosana had to put their political allegiances aside and intervene.

“It is fast becoming South Africa’s worst-performing municipality, and the premier and the ANC have to
admit that governance has come to a standstill and to dissolve council under the auspices of Section 139(1)
(c) of the constitution, and declare elections in all wards.

“What Thaba Chweu needs is a DA-led government, with an administration staffed by suitably skilled and
competent individuals, and by normalising service delivery, transform this municipality into an attractive
investment destination and rapidly creating job opportunities,” it stated.

TCM reacted to queries from Steelburger/Lydenburg News and said that the issue of the hydroelectric plant
operators being owed money to that amount was confidential information.

“The business community, Eskom, MBB Services International and Thaba Chweu met on April 3 to discuss
the challenge we are facing whereby Eskom is not renewing the contract with the service provider.”

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01/06/2019 Possible electricity cuts to hydro plant | Steelburger / Lydenburg News

TCM said that MBB indicated that it was negotiating a two-month contract with Eskom for April and May to
operate the hydro and sell electricity to Eskom.

“It also indicated in the meeting during that period it will be negotiating with Eskom to sell electricity for
longer periods and will inform the municipality about the outcome. TCM is aware of what can happen in
case the plant and the Rooidraai Substation challenges are not addressed as a matter of urgency, the
statement that nothing being done is further from the truth.

Eskom is engaged from time to time even at higher level, hence there is still electricity supply. People are
entitled to their own opinions but with the challenges facing the municipality, the administrators are trying
hard to avert situations which will be detrimental to human rights,” it said.

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AUTHOR

Narda Vermaak
Journalist

(mailto:narda@lowvelder.co.za)

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