More than 15 Free State municipalities, including the province’s capital city Mangaung metropolitan municipality are all under a vicious circle, as they owe Eskom over R16 billion, which could leave many residents without power as a result.
In a released statement on Monday, the power utility said this debt is for services rendered, as at the end of February 2022.
“Eskom supplies electricity monthly in bulk to the municipalities and metropolitan which is re-distributed and consumed,” said the power utility in a statement.
“Municipalities and metropolitan receive government grants as well as payment for services rendered from their loyal customers, but these amounts remain unpaid for the consumed energy to Eskom.
“This 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,” a statement further read.
According to Agnes Mlambo, general manager for CentralEast Cluster in Free State, top three municipalities consume R200m (97GWh) of energy, on average, monthly.
“To 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,” she explains.
“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 so that Eskom can in turn meet its obligations.
“The total outstanding municipal debt of R16 billion in Free State continue to threaten Eskom’s commitment to ensure continuity of supply and the ability to maintain the network,” she further stressed.
Mlambo alluded that municipality debt puts immense burden on Eskom’s revenue stream, which negatively affects service delivery.
Below are the defaulting Municipalities and Metro ranked in order of debt owed to Eskom:
| Municipalities |
| Matjhabeng |
| Maluti A Phofung |
| Ngwathe |
| Nketoana |
| Phumelela |
| Mafube |
| Nala |
| Mantsopa |
| Masilonyana |
| Tokologo |
| Dihlabeng |
| Moqhaka |
| Tswelopele |
| Setsoto |
| Letsemeng |
| Mangaung |
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