Rising municipal debt threatens Eskom and power supply in Gauteng. Image: GCIS
Rising municipal debt threatens Eskom and power supply in Gauteng
The increasing electricity debt from Gauteng municipalities poses a significant concern for Eskom, the national power utility.
Rising municipal debt threatens Eskom and power supply in Gauteng. Image: GCIS
The mounting electricity debt owed by municipalities in Gauteng has become a pressing concern for Eskom, the national power utility.
This burgeoning financial challenge not only jeopardises Eskom’s stability but also poses a threat to the reliability of electricity supply throughout the province.
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Which municipalities in Gauteng owe Eskom?
The City of Tshwane (CoT) and Ekurhuleni (CoE) Municipality play pivotal roles in exacerbating Eskom’s financial woes. CoT’s accumulating unpaid bills and CoE’s persistent late payments contribute to the grim situation, directly impacting residents and businesses reliant on a steady power supply.
The situation, if left unaddressed, could result in service interruptions, impeding economic activities in the region.
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“Despite continuous efforts to address the inconsistent and late payments, the debt, specifically that of the Cot, continues to grow and hinders Eskom’s ability to invest in essential infrastructure, maintenance and the development of sustainable energy solutions,”said Eskom.
How much do the municipalities owe?
As of August to October 2023, CoT’s outstanding bills amount to a staggering R3.1 billion, with a total debt reaching R4.2 billion. Additionally, a current account of R1.1 billion is due on 28 December 2023. CoE, despite extended payment terms, lags behind with arrears of R146 million.
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All municipalities are urged to prioritise settling current accounts and outstanding electricity payments to Eskom.
Eskom remains committed to collaborating with municipalities to find viable solutions and mitigate potential repercussions from the escalating debt crisis.
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It is crucial for stakeholders to act swiftly to ensure the sustainability of the electricity supply and the overall economic well-being of the region.
