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These Gauteng municipalities owe Eskom over R8 billion
Eskom said it does not have the financial capacity to finance municipalities' operations as it battles an exacerbating cash flow crisis.
Gauteng municipalities owe Eskom billions. Photo: The Witness
As Eskom battles its exacerbating cash flow crisis, the parastatal has told The Citizen Gauteng municipalities owe the state-owned entity over R8 billion.
This is 18% of the R50 billion owed to Eskom by municipalities and government departments across the country up until November last year.
President Cyril Ramaphosa said at the time, the R50 billion owed to the ailing utility must be recovered.
“We have made it clear that non-payment for services is unacceptable and have taken a number of steps to ensure that the payment of these debts is recovered.”
Municipalities owing Eskom
Eskom Gauteng spokesperson Amanda Qithi told The Citizen the amount owed to the power utility by Gauteng municipalities is concerning.
“We are constantly engaging with the municipalities that owe Eskom and we also follow all our credit management processes to try and recover what is owed to Eskom.”
According to Qithi, these Gauteng municipalities owe the state-owned entity over R8 billion up until end of December
- Emfuleni – R5.7 billion
- City of Tshwane – R999 million
- Rand West – R795 million
- Merafong – R658 million
- City of Ekurhuleni – R253 million
- Mogale City – R186 million
- Lesedi – R89 million
- City of Johannesburg – R6 million
Qithi said Eskom does not have the financial capacity to finance the municipalities’ operations.
“We urge the municipalities to pay and the municipalities customers to pay their accounts and for the service they received.”
ALSO READ: Emfuleni and Tshwane R7.1bn debt exacerbating Eskom cash flow crisis
Revenue committee
Responding during a question-and-answer session in Parliament last year, Ramaphosa said the government had established a multidisciplinary revenue committee, of which the power utility is a part of, to address this non-payment.
Last year, Eskom incurred a net loss of R12.3 billion after tax despite the power utility’s operating profit improving by 238% to R20.4 billion.
ALSO READ: Tshwane blames load shedding for Eskom debt burden
