Govan Mbeki Municipality’s Eskom debt reaches R6b despite smart meter progress
Almost R949m is also still outstanding on the Rand Water bill.
The Govan Mbeki Municipality’s debt to Eskom has escalated to R6.37b, raising serious concern among councillors despite the municipality reporting positive progress from its ongoing electricity smart meter installation project.
During the final council meeting of the year on December 4, acting Executive Mayor Thandi Ngxonono presented the latest financial and performance report.
She told the council that in October 2025, the municipality paid R38.5m towards its Eskom account, leaving an outstanding balance of R6,37b.
Ngxonono also reported that for September 2025, the municipality paid R41m towards its Rand Water account, with almost R949m still outstanding.
Smart meters reduce distribution losses
Ngxonono said the smart meter installation project has produced measurable improvements in electricity management, resulting in reduced energy distribution losses across the municipality.
When the project began, distribution losses reached 75.76% in July 2021. In April 2025, the municipality recorded its lowest loss figure at 36.82%.
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For the 2024/25 financial year, total annual distribution losses now stand at 47.98%, a 10.16% improvement from 58.56% in 2023/24.
In terms of actual energy loss, the municipality reduced losses by 21.98%, from 326 424 277 kWh in 2023/24 to 255 067 057 kWh in 2024/25. Ngxonono said the downward trend in losses has continued into the current financial year.
Councillors demand clarity
Despite the reported progress, several councillors questioned why the Eskom debt continues to rise if smart meters are yielding positive results.
They argued that a R6b bill contradicts the municipality’s claims of improvement.
Councillors demanded a detailed report explaining:
The specific areas where smart meters have been installed. How reduced distribution losses translate into financial benefit. Why Eskom debt continues to accumulate despite improved technical performance.
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