Non-payment of municipal debt affects Eskom’s sustainability

Eskom says large electricity supply debt racked up by municipalities is negatively affecting its financial performance.

File picture. Picture: Bhekikhaya Mabaso

Published Nov 8, 2022


Durban - Power utility Eskom says overdue debt is impacting negatively on its liquidity, financial performance and sustainability, leaving the public utility no option but to borrow in order to meet its financial commitments.

Eskom said this after it took the Emfuleni Municipality in Gauteng to the Pretoria High Court for failing to pay its R1.3 billion debt.

According to Eskom, the municipality has failed to pay towards its account “despite the municipality’s healthy revenue collection of about 90%” from customers.

“Eskom has started with the execution steps against the municipality to recover some of the municipality debt, including attaching the local authority’s bank accounts and moveable assets. Emfuleni Municipality is currently indebted to Eskom to the amount of R5.3 billion despite several litigations brought by the power utility since March 2018 to get the municipality to service its account,” said the public utility.

Meanwhile, Eskom says stage two load shedding will now be implemented all day, from 9am on Tuesday until further notice.

“This is necessitated by a breakdown of a Duvha generating unit and a delay in returning to service another Duvha unit. Eskom will provide a further update as soon as any significant changes occur,” said Eskom.


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