Eskom vows credit control measures against 14 municipalities
Eskom says it may initiate credit control measures against 14 municipalities, as unpaid electricity debt has surpassed R110 billion.
The utility has begun issuing notices allowing affected municipalities to respond before further action.
Eskom warns electricity supply could be interrupted if debts remain unpaid.
The utility’s spokesperson, Daphne Mokoena, said municipalities are failing to meet the conditions of the National Treasury’s debt relief programme, raising concerns about financial stability and ongoing electricity sector reforms.
She said the 14 municipalities have been selected because they have not settled their accounts for at least the last 18 months, have not met the conditions of the National Treasury municipal debt relief programme, or pose a significant financial risk to Eskom.
“We have to address rising arrear debt to protect the operational stability we have restored and the financial discipline we have rebuilt in the first three years of our turnaround to deliver on our developmental mandate. Through the turnaround, we are enabling businesses to protect and create jobs and supporting strategic industries to remain competitive, which in turn enables communities to thrive,” added Eskom’s Acting Group Executive for Distribution, Agnes Mlambo.
Eskom has vowed to proceed with credit control measures, which may include interrupting electricity supply at predetermined times, should the municipalities fail to take corrective action.
If defaults persist, Eskom will be compelled to limit supply to levels commensurate with the payments it receives.
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