South African municipalities owe Eskom a staggering R120 billion in debt, according to Minister of Electricity and Energy, Kgosientsho Ramakgopa. This debt has put significant pressure on Eskom's electricity supply system. Ramakgopa revealed this information while responding to questions from IFP member, Nompumelelo Mhlongo, in Parliament. The minister warned that if this debt continues to accumulate, it could reach R358 billion by 2031.
The R120 billion debt is based on figures up to July 31 of this year. Ramakgopa expressed concern that this debt is unsustainable and could have severe consequences for Eskom and the country's electricity supply. He specifically mentioned that the City of Johannesburg has cleared its debt, but many other municipalities are still struggling. The minister also revealed that 83 municipalities have been identified for assistance to resolve their debt issues.
Ramakgopa provided an update on the Restructuring Task Team established by Eskom to help municipalities resolve their debt issues. The team has made progress, with 10 municipalities having been cleared of their debt. However, 71 municipalities still require assistance, with a total debt of R40.5 billion. The minister emphasized that the government is working to find solutions to this problem.
The debt owed to Eskom by municipalities has significant implications for the country's electricity supply. Ramakgopa revealed that Eskom has lost R15.8 billion in potential revenue due to late payments from municipalities. This amount has increased from R11.9 billion in the previous year. The minister stressed that timely payments are crucial to maintaining a stable electricity supply.
Ramakgopa explained that the government has established a special program to help municipalities resolve their debt issues. The program, launched in 2023, aims to provide support to municipalities struggling with debt. The minister expressed optimism that this program will help alleviate the pressure on Eskom and ensure a stable electricity supply.
Eskom is taking steps to address the debt issue, including engaging with municipalities and providing them with support to resolve their debt issues. Ramakgopa revealed that the power utility is also exploring options for restructuring its debt and providing relief to municipalities. He emphasized that Eskom is committed to finding solutions to this problem.
The R120 billion debt owed to Eskom by municipalities is a significant challenge for the country's electricity supply system. Ramakgopa's comments highlight the need for urgent action to address this issue. The minister's efforts to engage with municipalities and provide support are crucial to resolving this problem and ensuring a stable electricity supply.
Key points
- Municipalities owe Eskom R120 billion in debt, which could reach R358 billion by 2031 if not addressed.
- 83 municipalities have been identified for assistance to resolve their debt issues, with 71 requiring support.
- Eskom has lost R15.8 billion in potential revenue due to late payments from municipalities.
