Former Eskom CEO Brian Molefe has advised the power utility’s current management to put the whole country, including the municipalities, on prepaid electricity.
Molefe, who’s now a member of parliament representing the uMkhonto weSizwe Party, says placing the whole country on prepaid electricity will assist in dealing with the Eskom debt.
He was speaking at the Portfolio Committee on Energy where Eskom’s Executives led by the CEO Dan Morakane briefed members about the utility’s performance for the 2024/25 financial year.
“What will it take to put the whole of South Africa to prepaid? Because in that way a municipality will have to pre-pay for electricity. So, there won’t be the issue of 30 days of debt growing to five years. Is it something you are entertaining,” inquired Molefe.
Molefe believes that Eskom would benefit by borrowing from the citizens and municipalities who would be using prepaid electricity.
The country’s municipalities owe Eskom more than R90 billion which Morakane said is out of control.
Morakane acknowledged that the utility is unable to collect the debt due to non-compliance of the municipalities to payment arrangements.
He added that Eskom finds itself under pressure to increase electricity tariffs while it is facing a huge challenge of illegal connections that lead to 70% of the energy loss.