{
  "id": 9138610,
  "title": "Municipal debt to Eskom could reach R358bn if decisive interventions are not implemented",
  "url": "https://urgent.news/2026/09/22/municipal-debt-to-eskom-could-reach-r358bn-if-decisive-interventions",
  "topic": "business",
  "section": "Business",
  "published": "2026-09-22T11:54:44.000Z",
  "source": {
    "name": "The Citizen",
    "slug": "the-citizen",
    "url": "https://www.citizen.co.za/business/municipal-debt-to-eskom-could-reach-r358bn-if-decisive-interventions-are-not-implemented/"
  },
  "original_language": "en",
  "account": "Minister of Electricity and Energy Dr Kgosientsho Ramokgopa has warned that the municipal debt to Eskom could soar to R358 billion by the 2031 financial year if corrective action is not taken. He expressed satisfaction that the City of Johannesburg has settled its arrears. \"As at 31 July 2026, total overdue municipal debt amounted to R120.26 billion. Municipal debt remains the single greatest threat to Eskom’s financial sustainability,\" said the minister. Ramokgopa inquired about the interventions in place to ensure municipalities recover overdue debt. Out of the 83 municipalities currently under Eskom's formal debt-recovery processes, 71 are part of the National Treasury's Municipal Debt Relief Programme. Eskom is employing various measures to enhance municipal payment performance, mitigate revenue-collection shortfalls, and curb further debt accumulation. One strategy is the Distribution Agency Agreements, where Eskom partners with defaulting municipalities to fortify electricity operations, boost efficiency, and boost revenue collection. Eskom provides technical assistance to transfer skills and build municipal capability while the electricity business is ring-fenced and managed by Eskom. Another approach is collaboration with the National Treasury, with Eskom supporting municipalities through the Municipal Debt Relief Programme. However, the programme has had limited success, with only 10 of the 71 participating municipalities fully complying with the National Treasury's condition that current accounts be settled in full each month. Eskom has also granted concessions and implemented targeted interventions to assist municipalities with payment challenges, including extended payment terms, ring-fencing of debt with interest suppression and reversals, and debt write-offs subject to National Treasury compliance. Eskom manages the Notified Maximum Demand of defaulting municipalities to lower their electricity bills. Legal action, supply limitations aligned with affordability, or supply disconnection as a last resort are also options.",
  "summary": "'Municipal debt remains the single greatest threat to Eskom's financial sustainability.'",
  "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."
}