Eskom gives defaulting municipalities more time

Eskom gives defaulting municipalities more time

Eskom has granted municipalities until the end of January to settle their arrear amounts following the request by Public Enterprises Minister Lynne Brown.

Minister Lynne Brown_Facebook
File photo: Facebook, Department of Public Enterprises

The power utility says this is consistent with the compassion Eskom has demonstrated since the commencement of its engagements with the municipalities.


"We have received the Minister's support with the requisite appreciation. The time afforded to the owing municipalities can help us close the gap in the arrear debt, if we obtain further participation. We have witnessed encouraging cooperation; we hope we are able to fully resolve the matter by the end of the allocated time," says Eskom.


Brown instructed Eskom to afford municipalities more and urged municipalities in arrears to move with speed to clear their debts.


"Turning off the power supply does not only impact on individual ratepayers and municipalities, it has potentially disastrous effects on businesses, and therefore jobs. One cannot help feeling sympathetic to those who pay their electricity bills in good faith, only for the payments to be consumed by municipalities with precious little income and resources. This is a matter of national importance that I would urgently hope to discuss with the Minister of Finance," says Brown.


Brown says the amount of R10.2 billion, which grows exponentially, has a potential to undermine the effort undertaken to restore Eskom back to its sound financial footing. 


"The security of future revenue is paramount to Eskom's sustainability. It is critical for all municipalities to institute pre-paid billing to help build a payment culture," says Brown.


"A healthy Eskom does not only meet its social mandate, through electrification and other transformational targets, but it also contributes to the positive sovereign rating of South Africa," says Brown.

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