The Minister of Electricity and Energy, Dr Kgosientsho Ramokgopa, has called on municipalities to address the R78 billion debt owed to Eskom, which would allow the power utility to fulfil its directive.
“Collectively, municipalities are owing Eskom R78 billion and … a lot of this is irrecoverable. There’s no possibility under the sun that we are going to collect that R78 billion. It’s important that we resolve this picture,” said minister Ramokgopa.
“This picture presents problems for Eskom. Eskom needs this money for it to be able to reinvest back into its own infrastructure. Municipalities have to pay that money … but on an objective ground, they simply don’t have the means to be able to pay,” he added.
Ramokgopa explained that, at the current trajectory, Eskom will be owed over R3 trillion by 2050, which threatens the existence of the power utility. “Eskom will collapse,” he said, “generation capacity is going to be compromised. So, it’s important that we resolve this question.”
The minister highlighted that ongoing non-payment is hindering Eskom’s ability to address distribution infrastructure needs, which has necessitated the implementation of load reduction. Load reduction is enforced in areas where demand exceeds the capacity of the infrastructure.
“In the solution, we must protect the interests of Eskom as a growing concern, ensure that municipalities are able to collect [revenue] but also protect the interests of the user,” said Ramokgopa.
“The biggest victims of all of that is the end consumer and, by definition, the South African economy,” he stated.
The minister stated that the department, in collaboration with municipal leaders, will tackle the issues of electricity affordability and access to enable municipalities to effectively collect revenue.
Compiled by Warren Hawkins
