96 municipalities owe Eskom billions

Date: Aug 23, 2018

For years, Eskom has been urging municipalities to prioritise paying the power utility for electricity to improve the company’s revenue collection.

As things stand, 96 municipalities owe Eskom an estimated R 27. 8 billion.

Eskom has had to cut supply to at-least 17 municipalities, sign 56 payment agreements and is a respondent to at least three court cases.

Minister of Co-operative Governance and Traditional Affairs, Dr Zweli Mkhize has had to step in and manage negotiations between Eskom and municipalities, looking for a political solution to the problem.

Speaking to Bongani Bingwa, Group Executive of Customer Services at Eskom, Ayanda Noah says 40% of their revenue comes from municipalities.

So, this is something that worries us because it has been coming for many years, since about 2010, we have noticed that the arrear debts that the municipalities owe us, has been going up.

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