Eskom says it may begin cutting electricity supply to 14 municipalities that have accumulated significant unpaid debt, as the power utility moves to recover billions owed for electricity.
In a statement issued this week, Eskom confirmed that formal consultation processes are underway with municipalities that have outstanding debts of more than 18 months.
The utility is attempting to recover approximately R110 billion owed by municipalities across the country.
Eskom noted that while progress has been made in stabilising the national power system and reducing load shedding, unpaid municipal debt remains a major financial challenge.
Although Eskom has not named all the municipalities involved, it confirmed that the affected areas are located in Mpumalanga, the Free State, North West and the Eastern Cape.
The only municipality specifically identified was Enoch Mgijima in the Eastern Cape.
Several municipalities in these provinces have historically appeared on Eskom’s defaulters list due to large unpaid electricity bills.
These include areas such as eMalahleni in Mpumalanga, Maluti a Phofung and Matjhabeng in the Free State, and Ditsobotla and the City of Matlosana in North West.
However, Eskom has not officially confirmed which of these municipalities are currently targeted.
Many of the municipalities in question are part of the National Treasury municipal debt relief programme, which was introduced to help struggling municipalities manage and reduce their Eskom debt.
However, Eskom said a number of municipalities participating in the programme have failed to meet the conditions required to qualify for debt relief.
The utility warned that this poses a serious financial risk and undermines efforts to stabilise the electricity sector.
Before implementing any power cuts, Eskom will issue formal notices in terms of the Promotion of Administrative Justice Act.
This process allows municipalities and other stakeholders an opportunity to make representations before any final decision is taken.
If the debts remain unpaid, Eskom may begin limiting electricity supply to affected municipalities at specific times. In more severe cases, the utility could further restrict supply to match the level of payments received.
Eskom acknowledged that these measures could affect communities but said continued electricity supply without payment is no longer sustainable.
According to reports, of the 71 municipalities that enrolled in the National Treasury debt relief programme, only 24 have remained compliant with the programme’s requirements.
This means the majority of participating municipalities are failing to meet the conditions needed for potential debt write offs.
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