The power utility last month revealed that municipal debt is fast approaching the R30 billion mark, after it increased by more than R8 billion in the last 12 months. 

The utility last month also told the Standing Committee on Appropriations that escalating municipal debt remains a huge challenge for the business and that there has been little change in the payment behaviour of municipalities. Coupled with the debt owed by Soweto, Eskom identified Maluti-A-Phofung Municipality in the Free State as one of the worst offenders, owing it over R4 billion, plus interest. 

Public Enterprise’s Kgothatso Tlhakudi told the committee that the utility has been meeting conditions set out for the financial support it has been receiving from the national government, but it needs more financial support. The power supplier said these municipalities and many others across the country needs to come to the table. 

Eskom is today expected to give an update on its recovery plans amidst the coronavirus and progress in terms of its unbundling into three independent entities.

OFM News