Eskom to take over rate collection in defaulting municipalities
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Deputy President David Mabuza has said government has entered into a deal with Eskom and municipalities for the power utility to take over the collection of rates in defaulting municipalities who owe it over R30 billion.
This would enable municipalities to increase revenue collection.
Mabuza told Parliament on Wednesday they have struck a deal between 18 municipalities who have the huge debt against Eskom to be first in line for the project.
In the past Eskom has even gone to court to try to recoup the billions it is owed by municipalities. In some cases Eskom has been cutting electricity to defaulting local councils.
During a question-and-answer session in the National Assembly, Mabuza said they have a reached an agreement between municipalities and the power utility.
“In our engagement with municipalities owing Eskom, we finally reached an agreement, especially the first 18 municipalities owing large sums of money were going to ask Eskom to take over the distribution and collection of rates,” said Mabuza.
He said this agreement would then enable municipalities to increase revenue collection.