Cape Town – Eskom has reported that municipal electricity debt in Gauteng is increasing at a concerning rate.
As of August 31, 2023, the City of Tshwane and City of Ekurhuleni jointly owe Eskom a total of R4.7 billion.
Tshwane’s debt has risen to about R3.2 billion in July and August 2023 due to irregular payments, while Ekurhuleni’s debt is just under R1.5 billion.
Eskom has expressed worry about the deteriorating payment patterns of these municipalities, which it said pose a significant threat to Eskom’s financial stability and sustainability.
“The payment patterns by both municipalities have deteriorated to concerning levels that further threaten Eskom’s liquidity, financial performance, and sustainability.
“The erratic payments by the City of Tshwane dating back to 2022 are alarming. Also of serious concern is the entrenched practice by the City of Ekurhuleni of settling its account late over the past six months,” said Eskom in a statement.
The City of Tshwane’s erratic payments date back to 2022, and Eskom is also concerned about Ekurhuleni’s consistent late settlement of its accounts over the past six months.
Despite efforts to recover the money, both municipalities have failed to fully meet their payment obligations and adhere to their electricity supply agreements.
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Compiled by Betha Madhomu
