Five municipalities in the Western Cape are experiencing challenges in managing their Eskom debt, with Kannaland and Theewaterskloof municipalities recording double-digit increases.
According to Eskom data, Beaufort West, Cederberg and Matzikama municipalities all cut their arrears by a third between March 2025 and March 2026.
Kannaland’s debt climbed 41% to R80-million, and Theewaterskloof saw the steepest rise at 48%, pushing its bill to R79.8-million.
“Most municipalities have shown a decrease in debt levels compared to the previous year, with the exception of Kannaland and Theewaterskloof municipalities,” said Wouter Kriel, spokesperson for MEC for Local Government, Anton Bredell. “Notably, Theewaterskloof experienced a significant increase in debt, rising by 48% compared to the same period last year.”
Dr Kelvin Kemm, a nuclear physicist and chairman of Stratek Holdings, weighed in on the data.
“In the case of Kannaland and Theewaterskloof, there is no doubt that poor municipal management is mainly to blame. This has resulted from instability and infighting within the local government. In contrast, many other municipalities are showing an improvement due to their more responsible municipal management,” he said.
“On a national scale, municipal debt has risen largely due to general mismanagement. However, it is also the case that electricity prices have risen far too much. Most households are battling to pay their bills, so many just stop paying.”
In the case of Kannaland and Theewaterskloof municipalities, he said the people who will suffer most are those who pay their electricity bills responsibly.
“If the municipal electricity distribution were to collapse completely due to poor municipal management, then the good people would suffer along with the bad. Drastic action against the municipal management is required.
“Under the current Eskom chairman and CEO, matters are improving noticeably, but Eskom has significant problems still to solve. This will need a combination of skilful strategy and some painful action directed at some municipalities.”
The Western Cape data comes as Eskom pushes ahead with its debt recovery drive. Nine municipalities have received council resolutions to sign the Distribution Agency Agreement, which allows Eskom to manage revenue collection directly. The power utility said engagements are ongoing on implementation.
Eskom also recently concluded a payment arrangement with the City of Ekurhuleni, which resulted in the withdrawal of the intention to interrupt supply.
“Recovering municipal debt enables Eskom to deliver a consistent electricity supply and invest in our infrastructure; enables businesses to protect and create jobs; and assists Eskom to play its part to support strategic industries to remain competitive,” said Agnes Mlambo, acting group executive for distribution.
Nationally, municipal debt to Eskom still stands at R111.6-billion.
- Five municipalities in the Western Cape are experiencing challenges in managing their Eskom debt, with Kannaland and Theewaterskloof municipalities recording double-digit increases.
- According to Eskom data, Beaufort West, Cederberg and Matzikama municipalities all cut their arrears by a third between March 2025 and March 2026.
- Kannaland’s debt climbed 41% to R80-million, and Theewaterskloof saw the steepest rise at 48%, pushing its bill to R79.8-million.
- “Most municipalities have shown a decrease in debt levels compared to the previous year, with the exception of Kannaland and Theewaterskloof municipalities,” said Wouter Kriel, spokesperson for MEC for Local Government, Anton Bredell.
- “Notably, Theewaterskloof experienced a significant increase in debt, rising by 48% compared to the same period last year.” Dr Kelvin Kemm, a nuclear physicist and chairman of Stratek Holdings, weighed in on the data.
