Eskom confirms no truth to Lesufi's municipal debt write-off claims
Eskom has clarified that it has not processed any debt write-offs for municipalities.
The statement comes days after ANC Gauteng Provincial Chairperson Panyaza Lesufi told people at an ANC gathering that all outstanding historical debt owed to Eskom by direct customers, including municipalities, had been scrapped.
"All the people that were owing Eskom for years…All those debts have now been officially scrapped," said Lesufi.
He said this was championed by the ANC, further urging all ANC-led municipalities to do the same.
"We are starting on a new slate, all of us,” added Lesufi to loud cheers from the crowd.
However, in a statement released on Thursday evening, Eskom says there are no immediate plans to scrap any debt.
"As at the end of March 2023, arrear municipal debt was at R58.5 billion, a substantial 30% year-on-year increase from R44.7 billion in March 2022.
The top 20 defaulting municipalities account for about 78% of total arrear municipal debt," reads the statement.
Eskom says it continues to make efforts to address the arrear debt.
"A high-level intervention and continuous, coordinated multi stakeholder approach is required, and Eskom pins its hopes on the Municipal Debt Relief programme facilitated by the National Treasury to support municipalities deal with their historical debt challenges.
Eskom welcomes the Municipal Debt Relief as it is seen to be improving its cash flow," said Eskom.
Eskom further clarified that the Municipal Debt Relief only applies to municipalities and does not include any other customer categories.
"A majority of municipalities have applied to National Treasury for the debt relief.
Fifty-two (52) of these municipalities have received approval from National Treasury with six municipalities granted conditional approvals.”
The utility says it will process the first portion of debt write-off only after municipalities have met the set conditions to the satisfaction of National Treasury, for twelve consecutive months.
"Eskom has mechanisms in place to assist its direct residential customers facing challenges in settling their accounts in full.
However, as it is the case with any business, customers who do not pay their monthly accounts and fail to engage
leave Eskom with no option but to implement Credit Control Management processes including interruption of services," concluded the Eskom statement.
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