Of the R4.7 billion owed by 38 municipalities in the Eastern Cape to Eskom, over R1.5 billion is owed by municipalities in the Chris Hani District Municipality (CHDM) area accounting for 36 percent of the total provincial debt.
The embattle Enoch Mgijima Local Municipality (EMLM) leads the pack with a current total debt of R1 154 740 198 followed by Inxuba Yethemba Local Municipality at R501 104 294. Emalahleni Local Municipality owes R2 643 386, Sakhisizwe at R2 578 789, Intsika Yethu at R837 630 and Dr AB Xuma Local Municipality owing R226 435. CHDM owes the power utility an amount of R576 709 – totalling R1 662 707 441.
The information was contained in a written reply by cooperative governance and traditional affairs MEC Zolile Williams to questions put to him by DA MPL Dr Vicky Knoetze in the provincial legislature.
Knoetze said the amount had doubled since 2021 from just over R2 billion.
“Residents suffer from extended loadshedding and imposed load reduction strategies due to non-payment, crippling businesses and destroying small towns. Other basic services, most notably water and sanitation, are severely disrupted due to lack of power,” said Knoetze.
She said the spiralling debt was also contributing to South Africa’s overall deteriorating fiscal position, which has the capacity to plunge the country into an economic crisis.
Hard-pressed consumers cannot keep up with above-inflation increases in rates and service charges year after year, Knoetze said, resulting in municipal collection rates declining. Municipalities were, as a result, dipping deeper into electricity revenue to cover operational costs, rather than paying back what is owed.
“Drastic action needs to be taken to ensure that money taken from consumers for electricity, is paid over to Eskom. It is fundamentally unfair to punish the residents for the administration’s failure,” said Knoetze.
“The DA is reiterating its call that electricity funds collected from residents must be ringfenced and that these funds must first and foremost be used to settle Eskom accounts and remaining funds must be used to maintain and upgrade failing electrical infrastructure, which is taking severe strain under the current incessant loadshedding.”
She said it was time to rescue the Eastern Cape from the maladministration and incompetence that has brought this province to its knees.
