Addressing the National Assembly on Wednesday, Mabuza announced that the likes of Maluti-A-Phofung Municipality in the Free State and many others that owe Eskom billions of rands will soon have to sign new payment agreements committing themselves to settle their bills. He said the non-payment of municipal services affects municipalities' capacity to provide adequate services, as well as the viability of Eskom. 

Mabuza says Eskom has taken several municipalities to court in efforts to recover the money owed to them, but it has come to light that that's not the best option. He said they are now considering using some of the grants allocated to municipalities to settle their Eskom debt.

His statement comes days after the power utility called on municipalities to settle their debts stating that it affects their ability to stay afloat.

OFM News has previously reported that municipalities in the Free State collectively owe the power utility over R12 billion, making it the province with the highest number of defaulting municipalities.

Of the total debt, over 50% is owed by the Maluti-A-Phofung and Matjhabeng Local Municipalities alone.

OFM News