Despite numerous government interventions over decades, municipalities owing money to Eskom for bulk supply have continued defaulting their electricity bills.
Deputy Pres. Paul Mashatile reiterated the negative impact of dysfunctional municipalities during May, when revealing that by end 2022 municipalities owed Eskom R56,3 billion, adding that this debt continues to rise.
A large number of municipalities in the Free State are among the chief culprits.
The debt of the 16 defaulting municipalities, with overdue accounts that stood at R16 billion at the end of May, has increased to R20 082 962 709,22. The money is owed for bulk supply.
Only two municipalities in the province have paid their overdue debt in full. These are the Metsimaholo Municipality, administered by a coalition, and the ANC-led Setsoto Municipality. The two municipalities are reportedly also the only ones servicing the current accounts.
The defaulting municipalities continuing to operate is an ongoing concern, having started the new municipal financial term of 2023-’24, which began on 1 July, with debt.
According to Eskom, the Mangaung Metro’s overdue account stands at R648 783 493,21.
The three municipalities with the largest amount of debt are Ngwathe, Maluti-A-Phofung, and Matjhabeng – who, on average, consume R200 million’s (97 GWh) worth of energy on a monthly basis.
