Ramokgopa says municipal debt remains major concern for Eskom

JOHANNESBURG - Municipal debt remains a major concern for Eskom as municipalities across the country owe the power utility more than R100 billion.

Eskom revealed its summer outlook plans on Friday, promising that load shedding is not on the cards this summer as the electricity situation in the country remains stable.

But as municipal debt piles up, Eskom remains somewhat powerless in trying to claw back this money.

READ: Municipalities owing Eskom over R100bn still defaulting: Electricity Minister

The instruments that would allow the Eskom group head, Dan Marokane, to initiate credit control by denying municipalities electricity until they pay their debt, exist in theory but not in reality.

Electricity Minister Kgosientsho Ramokgopa said Eskom is owed more thanR100 billion by municipalities across the country.

ALSO READ: Eskom writes off R830m of R3.2bn City of Joburg debt

"If the major metropolitan areas, as is the case, are owing to Eskom. He can initiate credit control by denying them access until they pay. Imagine a situation where Ekhuruleni is the dark, Tshwane is in the dark, City of Johannesburg is in the dark, that’s 33% of the country's GDP, that instrument is not at his disposal."

Plans are underway to finalise the distribution agency agreement, which will see Eskom working together with municipalities to assist them with capital allocation and technical losses in ensuring the protection of revenue streams of both Eskom and municipalities.