Govt to lead efforts to tackle municipal debt owed to Eskom

The South African government pledges to spearhead efforts to address the significant municipal debt owed to electricity provider Eskom. This comes as the power company battles unpaid electricity costs from municipalities across the nation. Electricity and Energy Minister Dr Kgosientsho Ramokgopa highlights that Eskom might opt for credit control measures, but stresses the potential economic repercussions of widespread power outages.

He emphasizes that the government, in collaboration with National Treasury and Cooperative Governance and Traditional Affairs, is working to expedite debt agreements and assist municipalities in enhancing their revenue collection. Ramokgopa underscores that the government plays a pivotal role in tackling this issue, stating, “We will lead the efforts on municipal debt.

A big part of it lies in government. Eskom can choose the easy route by implementing credit control, but we know that’s not desirable because it would have a huge impact on the South African economy. We’re working closely with Treasury and Cogta to accelerate the signing of debt agreements and support municipalities in their efforts to collect.”