Municipal debt to Eskom stands at almost R50 billion nationwide, with the Free State province heading the list of defaulters. Image: Adobe stock
Eskom owed R50 BILLION by municipalities – here are the worst offenders
Municipal debt to Eskom stands at almost R50 billion nationwide, with the Free State province heading the list of defaulters.
Municipal debt to Eskom stands at almost R50 billion nationwide, with the Free State province heading the list of defaulters. Image: Adobe stock
Municipal debt to Eskom stands at almost R50 billion nationwide, with the Free State province heading the list of culprits.
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This debt owing adds to the lengthy list of reasons cited for the power utility’s struggle to meet South Africa’s increasing electricity demand.
According to EskomsePush, South Africa has had 2 104 hours (88 days) of load shedding to date in 2022.
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Eskom has around R400 billion of debt that it cannot service, relying on bailouts from the National Treasury to say afloat.
As reported by The South African website, the power utility has applied to the National Energy Regulator of South Africa (Nersa) to hike tariffs by 32% on 1 April 2023.
That’s sadly not an April Fool’s joke!
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According to Daily Maverick, as of 31 July 2022, 96 out of 278 municipalities in South Africa were indebted to Eskom.
How much Mzansi provinces owe Eskom
- Northern Cape: 21 municipalities owed a total of R2 983 153
- Free State: 16 municipalities owed a total of R16 753 640
- North West: 11 municipalities owed a total of R3 385 887
- Eastern Cape: 11 municipalities owed a total of R2 364 950
- Mpumalanga: 10 municipalities owed a total of R14 167 395
- Gauteng: eight municipalities owed a total of R8 024 882
- KwaZulu-Natal: eight municipalities owed a total of R764 314
- Limpopo: six municipalities owed a total of R1 062 095
- Western Cape: five municipalities owed a total of R256 095
Together, these 96 municipalities owed R49 762 412 to the power utility.
Of the 16 municipalities in the Free State owing Eskom nearly R17 billion, Maluti-A-Phofung is the biggest culprit, accounting for almost half of the debt at R6.7 billion.
Maluti-A-Phofung has been struggling to manage its electricity grid for years and is now signing the power supply back to Eskom, SABC News said.
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