Tshwane debt is growing worse – Eskom
Eskom says it is pursuing legal processes intended to recover the overdue debt from Tshwane. This follows Emfuleni municipality having their assets attached by Eskom after a court judgment in 2022.
Tshwane’s debt to Eskom is steadily growing and the electricity provider remains unfazed about pursuing legal action to get paid, according to the state-owned enterprise.
Tshwane’s electricity debt ballooned to R3.8-billion recently despite mayor Cilliers Brink proclaiming during his maiden State of the Capital address in May that he planned on achieving a revenue collection rate of at least 93% and disconnecting 1 000 delinquent customers every week to regain financial control.
We are aggressively implementing #TshwaneYaTima campaign to improve revenue collection but first we want to ensure that we get our house in order in terms of billing issues. @CityTshwane pic.twitter.com/HnMPmhs2sK
— Mayor Cilliers Brink (@tshwane_mayor) July 4, 2023
The debt has increased by approximately R600-million since August 31, which has left Eskom fuming.
Eskom Gauteng communication and stakeholder relations (CPRP) Ronel Kotze said: “Tshwane’s overdue debt increased to R3.8-billion because it had yet to settle invoices for July, August and September.”
She said the metro’s payment patterns had drastically deteriorated, which raised concern as the debt further threatened Eskom’s liquidity, financial performance and sustainability.
“The erratic payments by the Tshwane dating back to 2022 are alarming.
Eskom is pursuing legal processes intending to recover the overdue debt.
In 2022, Tshwane’s debt stood at R1.6-billion on its unpaid bulk electricity supply account.
On October 10, the Treasury indicated that of South Africa’s 257 municipalities, 136 owed Eskom R58.5-billion on March 31.
Last month, Tshwane manager Johann Mettler confirmed Eskom was owed to the tune of R3.2-billion.
“We have embarked on a payment arrangement to Eskom and have stuck to it, although not to Eskom’s satisfaction.”
Mettler said there were significant problems in collecting water and electricity payments from ratepayers, which had impeded Tshwane’s ability to pay its bills.
He said Tshwane was in financial distress.
Last year, Tshwane Ya Tima generated R800 million in arrear payments, but we also know that the campaign was undermined by illegal reconnections. We have learnt from this and adapted #TshwaneSoCA2023#MayorBrink
— City of Tshwane (@CityTshwane) May 18, 2023
Tshwane could potentially have its assets seized to pay Eskom after a similar fate befell Emfuleni when the utility obtained an R1.3-billion judgment to “attach” that municipality’s assets to offset arrears.
Eskom had followed a strict debt collection process as the municipality could not settle its bills on time.
“Eskom is on record having communicated about other municipalities’ debt including Ekurhuleni and Emfuleni. The same process will be adopted with other defaulting municipalities,” Eskom said.
#EskomGauteng#EmfuleniAssetsAttached
We are attaching the Emfuleni Local Municipality’s assets after obtaining a R1.3 billion judgement against the municipality. pic.twitter.com/7jj3W6BqqI
— Eskom Hld SOC Ltd (@Eskom_SA) December 1, 2022
#EskomGauteng #EmfuleniAssetsAttached
Emfuleni municipality’s tipper removed from the munic’s offices. pic.twitter.com/s7MrY0GMGt
— Eskom Hld SOC Ltd (@Eskom_SA) December 1, 2022
This is as the metro debtor’s book stood at R22-billion, with ratepayers unable to meet their financial obligations, which has not made it easy for the metro to propel itself out of its financial predicament.
Since September 19, 114 000 accounts for water and electricity in the economically depressed metro had not been paid.
Due to the culture of non-payment, Tshwane’s debt had risen from R17-billion in 2021 to R20.8-billion in March this year and R22-billion in September spread over thus:
– Businesses: over R5-billion
– Residents: over R12-billion
– Government: over R1-billion
– Embassies: over R18-million
– Councillors: over R2-million
– Employees: over R29-million
– Indigents: over R1-billion
– Inactive accounts: over R1.6- billion
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