Eskom concerned as municipal debt increases

Eskom CEO Jabu Mabuza and power utility's senior management released its interim results at its Megawatt Park headquarters on Thursday.

The state-owned entity made a net profit of R1.3 billion in the first half of the financial year, but projects a loss of R20 billion by March 2020.

The municipal debt had increased to R25.1billion, up from about R20bn at the end of the 2019 financial year.

Payment for the provision of electricity by municipalities, excluding the country's major metros, decreased to 78%.

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The embattled utility's chief financial officer Caleb Cassim says if it continues on the trajectory then by March it will up by R5 billion.

This comes a day after utility threatened to stop supplying electricity to Mangaung Metropolitan Municipality which includes Bloemfontein.

"It will be a R10 billion increase year-on-year. That is a key item that needs to addressed with the support of government.

"With regards to Soweto, a total amount of R16 billion that is outstanding. We have made a write-off during the first 6 months of R3,6 billion which we didn't have to write off.”

Cassim says in total the debt that needs to be collected is about R40 billion.

Cassim also welcomed president Cyril Ramaphosa zero tolerance for non-payment when he indicated that consumers must pay for services received.