The power utility this time attached the bank account of the Matjhabeng Local Municipality to recover a R3.4 billion owed for bulk electricity supply.

Eskom says it has only received five payments amounting to R66.5 million from the municipality since the beginning of the year.

It confirms this step is a result of the municipality's repeated failure to adhere to its payment obligations and it will continue taking all legal avenues to ensure the outstanding municipal debt is recovered.

This comes just months after the power supplier had the bank accounts of Maluti-A-Phofung frozen due to non-payment for services.

Free State municipalities collectively owe the power utility over R12 billion, making it the province with the highest debt and one with the highest number of defaulting municipalities.

OFM News previously reported that of the R12 billion owed by Free State municipalities, Maluti-A-Phofung and Matjhabeng account for over 50% of the debt.

Presenting Treasury's 2020/21 budget before Legislature in July, Finance MEC Gadija Brown said the state of local municipalities in the province is a major concern, which also poses a serious threat to the operation and sustainability of Eskom and water boards.

She, however, said the problem does not just lie with the Free State, as municipalities countrywide owe Eskom more than R28 billion. Brown said they acknowledge how municipalities' escalating debt hampers service delivery to residents and that Free State Treasury was working closely with Cogta to address the Eskom debt.

Eskom now says it has since 2014 employed various collection methods to recover funds owed by this municipality without any luck, as the municipality has consistently failed to honour its payment agreements as well as court orders.

OFM News