KROONSTAD – Moqhaka Local Municipality’s debt to Eskom has climbed to approximately R2.45 billion, raising concerns about the sustainability of electricity services and the potential impact on residents and businesses across the municipality.
According to financial records, the municipality owed Eskom R2,45 billion for bulk electricity as at 30 June 2026, with approximately R2,24 billion of that amount outstanding for more than a year.
Eskom previously issued a formal disconnection notice indicating that the municipality’s overdue debt stood at R1.47 billion and setting a deadline of 23 June for payment. The utility warned that failure to settle the account could result in disconnection without further notice.
The municipality’s June invoice reflected a total amount due of R2,38 billion, including R2.19 billion that had been overdue for more than 90 days. The figures indicate that the debt has accumulated over an extended period.
Total amount due of R2,38 billion
While the municipality made payments of R40 million on 22 May, R20 million on 29 May and R10 million on 12 June, the outstanding balance continues to grow.
The Auditor-General’s material irregularity findings have highlighted ongoing compliance concerns and identified shortcomings in the implementation of remedial measures. As a result, intervention has been requested from various provincial and municipal authorities.
Further concern has been raised over the municipality’s participation in National Treasury’s Municipal Debt Relief Programme, which was intended to assist municipalities in reducing their Eskom debt. Failure to meet programme requirements could place continued participation at risk.
Should Eskom proceed with disconnection measures, households and businesses in Kroonstad and surrounding towns could face severe disruptions. Electricity interruptions would affect essential services such as water pumping, refrigeration, commercial operations and daily household activities.
Audit committee concerned
The municipality’s Audit Committee has also expressed concern that electricity revenue is being used to subsidise other municipal services that are not financially self-sustaining. This practice reduces the funds available to settle Eskom accounts and may contribute to the growing debt burden.
Additional concerns have been raised regarding load management, metering systems and revenue collection processes, which may affect billing accuracy and service delivery.
Stakeholders have called for a realistic repayment arrangement with Eskom, improved revenue collection, stricter cost control measures and more effective budget management to stabilise the municipality’s finances.
There have also been calls for investment in independent metering infrastructure and a comprehensive cost-of-supply study to ensure that electricity tariffs accurately reflect the cost of providing the service.
With Eskom debt continuing to rise, attention is increasingly focused on measures needed to protect electricity supply and ensure reliable municipal services for residents and businesses.
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