Cape Town - Public Enterprises acting director general Thuto Shomang said Eskom's current debt stands at R435 billion, which represented 15% of South Africa's sovereign debt.
"Default is threatening the economy," Shomang said while briefing the public enterprises portfolio committee on Wednesday.
Shomang also said cash generated by the entity did not cover operating and servicing costs.
He said the escalation of municipal and Soweto debt totalling R28 billion was growing at R1 billion a month.
"The number of employees increased from 32 000 in 2007 to 48 000 in 2018 with associated costs growing from R9.5 billion to R29.5 billion over the period," Shomang said.