Friday, January 30, 2015

Municipal debt to Eskom hindering electricity supply

This was the subject of an Engineering News Online article published on 23 January 2014 titled ‘Municipalities’ R4bn debt to Eskom hindering electricity supply’.

The article reported on a statement attributed to civil rights organisation AfriForum on 22 January 2015 that claims that `Municipalities owe State-owned power utility Eskom more than R4.6-billion, an increase of more than R2-billion in the last year, a debt that is contributing to the pressure on Eskom’s ability to provide electricity.’

It also states that the largest defaulters were municipalities situated in the Free State and Mpumalanga, owing more than R1.6-billion and more than R1.4-billion, respectively. AfriForum community structure manager Tiaan Esterhuizen reportedly also suggested that defaulting municipalities lose their licence to supply electricity and added that the privatisation of electricity management would remove incompetent municipalities while dealing with the problems of electricity supply.

The source of AfriForum’s figures are not known but it can be confirmed that, as at 30 November 2014, the 30 day and over municipal arrear debt to Eskom stood at R4.608bn. Unfortunately R2.8bn of this debt had been outstanding at that time for 90+ days.

A copy of the full Engineering News Online article is available at (Source: Creamer Media’s Engineering News at

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