{
  "id": 8898764,
  "title": "Are Eskom’s solutions for municipal debt faltering?",
  "url": "https://urgent.news/2026/09/21/are-eskoms-solutions-for-municipal-debt-faltering-8898764",
  "topic": "business",
  "section": "Business",
  "published": "2026-09-21T10:03:32.000Z",
  "source": {
    "name": "The Citizen",
    "slug": "the-citizen",
    "url": "https://www.citizen.co.za/business/are-eskoms-solutions-for-municipal-debt-faltering/"
  },
  "original_language": "en",
  "account": "Eskom, South Africa's state-owned power utility, is facing challenges in resolving the deep indebtedness of several municipalities. The government and Eskom have provided little information about their proposed solutions to municipalities struggling with massive debt. As of June 2024, the total outstanding debt reached R119 billion. In March 2024, Eskom notified 14 municipalities that unless they paid their debts, their electricity supply could be cut off. Three options were presented to these municipalities: Distribution Agency Agreements (DAAs) where Eskom becomes the agent to distribute electricity, allowing consumers to pay directly to Eskom; switching to a prepaid system where municipalities pay only for the electricity they consume; or Eskom could cut off the electricity supply. Despite initial progress, the process has hit legal hurdles, particularly in the case of Dr Beyers Naudé municipality. A court order has prevented Eskom from cutting electricity supplies to the municipality before following the prescribed processes for outsourcing a municipal service. National Treasury set a deadline of September 1, 2024, for municipalities to appoint Eskom as an agent, but the deadline passed without any municipality reaching an agreement. Eskom has confirmed that the proposed prepaid electricity arrangement in Inxuba Yethemba municipality has not materialised, and AfriForum is challenging the legality of a DAA concluded with the Merafong municipality.",
  "summary": "Nothing has come of the municipal prepaid agreement previously announced.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}