- SA’s municipalities owe power utility Eskom R78-billion
- Debt has increased nearly six times since 2018
- Just 28 municipalities account for R26.7-billion
Electricity and energy minister Kgosientsho Ramokgopa says South Africa’s municipalities owe power utility Eskom R78-billion.
The minister has expressed doubt that Eskom would be able to recover these funds. Since 2018, the debt owed by municipalities to the national power utility has increased nearly six times.
In its integrated results published in March 2023, Eskom reported that municipalities owed it R58.5-billion and said the debt had escalated ‘to unsustainably high levels’.
Eskom and Treasury are working with 28 municipalities in a debt relief programme, which collectively account for R26.7-billion – almost half of the outstanding debt as at 31 March 2023.
To address the arrears, Eskom has negotiated payment arrangements, helped municipalities with service delivery and revenue collection. Legal action has also been initiated in some instances. A municipality’s debt can be written off if certain conditions are met.