Free State municipalities including Mangaung jointly owe Eskom more than R17-billion for services rendered by the end of August, the power utility said on Tuesday.
The state-owned entity supplies electricity on monthly basis and in bulk to these municipalities, who then sell it at a profit to customers.
“Municipalities receive government grants for free basic electricity. Regardless, their accounts and arrear debt remain unserviced, bringing Eskom Free State to its knees,” said the power utility.
However, Eskom said it expects to continue providing electricity to these municipalities while maintaining its network and paying for diesel to ensure the security of supply and to meet the demand for electricity.
According to Eskom, the top three owing municipalities in the province – Maluti-A-Phofung, Matihabeng and Ngwathe local municipalities – on average consume R200-million (97GWh) of energy monthly. To date, these municipalities have brazenly increased their debt to Eskom to R13.3-billion.
Agnes Mlambo, general manager central east cluster (Free State and KwaZulu-Natal), explained: “It is extremely difficult for Eskom to continue absorbing the shortfall and continue infrastructure expenditure to supply these non-paying municipalities.
“It is unfair and unjust for delinquent Free State municipalities to expect Eskom to provide electricity at no cost to them, especially while the country is facing supply constraints.”
Mlambo said municipal debts put an immense burden on the power utility’s revenue stream, which negatively affects service delivery.
“We urge both Eskom and municipal customers to use electricity legally and to pay for all services when due.”
Eskom is currently rolling out national loadshedding at stage two.
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