Eskom in the North West has raised concerns that the R7.7 billion owed by municipalities in the province, is putting strain on its financial stability and sustainability to provide cost-effective and reliable electricity supply.This was revealed by Eskom’s provincial spokesperson Ezekiel Baruti, who highlighted that if the debt had been settled, the entity would be in a be in a better financial position to fulfil its mandate.
“The cost of supplying electricity is expensive.Now Eskom must use its reserves and funds earmarked for electrification projects, to service those municipalities which don’t pay,” said Baruti.
According to a list that Eskom shared with Newsnote, top of the list is the Matlosana Local Municipality in Klerksdorp which owes the power utility Eskom R2.3 billion, followed by Lichtenburg-based Ditsobotla at R1.3 billion, and Madibeng with R1.1 billion respectively. Other municipalities range from R93 million to R971 million.Baruti highlighted that the Rustenburg Local Municipality is the only one which does not owe Eskom.He says its debt was settled through a concession of the National Treasury Municipal Debt Review Program.In addition, Baruti said the utility will take legal actions against these municipalities only if the interventions of Inter-governmental Relations have been exhausted.
By the end of November last year, municipal arrears across the country stood at R95 billion, with Eskom projecting an increase to R110 billion by end of March this year.
