As of the end of February 2022, 15 Free State municipalities and the Mangaung Metro owed Eskom a whopping R16 billion for services rendered. The Ngwathe Municipality, including Parys, Vredefort, Koppies, Heilbron and Edenville, is third on the list. Maluti a Phofung and Matjhabeng are ranked in first and second positions respectively.
On Monday, Eskom said this debt is crippling service delivery. It threatens the security of supply to the citizens of these supply areas, “as Eskom cannot continue maintaining its infrastructure and supply electricity for free.” Eskom supplies the electricity to the municipalities and metro in bulk monthly. The power is then redistributed and consumed. “The municipalities and metro receive government grants and payment for services from their loyal customers, but these amounts are not paid over to Eskom for the energy consumed,” Eskom said.
The top three municipalities consume an average of R200m (97GWh) of energy monthly. To date, they have increased their debt to Eskom to R12.5 billion. Collectively, this accounts for 78 per cent of the arrears in the province. “Municipalities have a constitutional responsibility and duty, not only to Eskom but to their customers, to fulfil their financial obligations for the bulk supply of electricity. Only then can Eskom meet its obligations, the power supplier said.
“The total outstanding municipal debt of R16 billion in the Free State continues to threaten Eskom’s commitment to ensure continuity of supply and the ability to maintain the network.” “
Eskom thanks municipalities in the province that prioritise their Eskom account payment,” says Agnes Mlambo, the general manager for Central East Cluster (KZN and Free State). She said municipal debt puts an immense burden on Eskom’s revenue stream, negatively affecting service delivery.
