Emalahleni Local Municipality in Mpumalanga was Eskom's largest municipal debtor on 31 August, owing R13.6 billion in overdue debt, according to a written parliamentary reply from Electricity and Energy Minister Kgosientsho Ramokgopa.
The reply was to a question from Adil Nchabeleng, a member of Parliament for the uMkhonto weSizwe Party.
What the parliamentary reply says
According to the reply, 83 municipalities are under Eskom's formal debt-recovery processes and 71 take part in National Treasury's Municipal Debt Relief Programme. Only 10 of those 71 pay their current Eskom accounts in full each month.
The City of Johannesburg recently settled its arrears in full, the reply says. The Eskom Restructuring Task Team has proposed a workstream on structural solutions.
Eskom's warning and measures
Eskom says municipal debt is the single greatest threat to its financial sustainability. It projects the debt could reach R358 billion by the 2031 financial year without decisive intervention.
The utility lists distribution agency agreements, under which it manages a municipality's billing and revenue collection and provides technical teams while the licence stays with the municipality. These are temporary. It also offers extended payment terms and debt restructuring.
What we do not yet know
- Emalahleni's response, and whether it disputes the amount or has a payment plan.
- How the R13.6 billion compares with the next largest debtors; the report we used gives only the top figure.
- Whether the figure is capital owed, interest, or both.
- Eskom's own comment on the reply.
