Eskom laments the bad debt incurred by numerous Free State municipalities.<\/p>\n\n\n\n
Of the 19 municipalities in the province, 15 are in the red, Eskom announced on Monday (28\/03). <\/p>\n\n\n\n
This bad debt obstructs its ability to fulfil its obligation of supplying power without disruption, and it also has a negative impact on cash flow. <\/p>\n\n\n\n
The defaulting municipalities are facing blackouts.<\/p>\n\n\n\n
Eskom stated that by the end of February it was owed a combined R16 billion by the 15 debt-ridden municipalities, as well as the Mangaung Metro. This is for bulk supply. <\/p>\n\n\n\n
Defaulting municipalities are Maluti-a-Phofung, Matjhabeng, Ngwathe, Nketoana, Phumelela, Mafube, Nala, Mantsopa, Masilonyana, Tokologo, Dihlabeng, Moqhaka, Tswelopele, Setsoto and Letsemeng. <\/p>\n\n\n\n
According to Eskom, three municipalities \u2013 Maluti-a-Phofung, Matjhabeng and Ngwathe \u2013 consume R200 million (97 GWh) of energy on average monthly.<\/p>\n\n\n\n
\u201cTo date these municipalities have increased their debt to Eskom to R12,5 billion. Collectively this accounts for 78% of the overdue debt in the province,\u201d said Agnes Mlambo, Eskom\u2019s general manager for the Central East Cluster (Free State and KwaZulu-Natal). <\/p>\n\n\n\n
Eskom has been embroiled in a long and bitter legal dispute with the cash-strapped Maluti-a-Phofung since 2019. <\/p>\n\n\n\n
\u201cThis behaviour threatens the security of supply to the citizens residing in these supply areas, as Eskom cannot continue to maintain its infrastructure and supply electricity for free. <\/p>\n\n\n\n
\u201cMunicipality debt puts immense burden on Eskom\u2019s revenue stream, which negatively affects service delivery.\u201d <\/p>\n\n\n\n
The entity laments that outstanding debts by municipalities have become an overwhelming challenge, affecting loyal paying customers and communities who bear the brunt of defaulting municipalities. <\/p>\n\n\n\n
The revelation regarding the crippling debt comes days ahead of Eskom\u2019s new tariff hike of 9,61%. <\/p>\n\n\n\n
This tariff for the 2022-\u201923 fiscal term was approved by the National Energy Regulator of South Africa (Nersa) last month. <\/p>\n\n\n\n
The tariff goes up on 1 April for Eskom customers. The increase that municipal customers can expect to pay will be effective from 1 July this year. <\/p>\n\n\n\n
Last year Nersa approved a hike of 15,06% for Eskom\u2019s direct customers, while municipalities tariff increased by 17,80% for consumers. <\/p>\n","protected":false},"excerpt":{"rendered":"
Eskom laments the bad debt incurred by numerous Free State 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