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Send  Share  RSS  Twitter  22 Sep 2014

LOCAL GOVERNMENT: Debt to Eskom Growing Rapidly

 





Recent Gauteng Business News

Civil rights organisation AfriForum is concerned about the escalation in municipal debt to Eskom. This comes after the National Energy Regulator, NERSA, approved a higher tariff, while municipalities in South Africa owe Eskom more than R3,2 billion.

Free State municipalities are at the forefront with their electricity debt of R1 125 555 933, and Mpumalanga is on their heels with debt of R996 605 284.

According to Tiaan Esterhuizen, Manager of Community Structures at AfriForum, it’s unfair to burden taxpayers – who are already paying their electricity bills every month - when the problem is attributed to the failure of municipalities to pay their Eskom accounts.


“Loyal South Africans should again cough up because Eskom is unable to recover their debt. It’s important for the public to realise that the increase in outstanding debt of municipalities can lead to further problems if Eskom decided to cut the bulk electricity supplied to towns. If municipalities do not pay their accounts, Eskom will have no choice but to cut the power supply,” Esterhuizen said.

According to Esterhuizen, the licenses of municipalities, which enable them to supply electricity, should be revoked if they fail to pay their accounts. AfriForum believes that privatizing electricity management will eliminate the impact of inept municipalities, which will solve problems with electricity supply. Privatizing electricity supply will also streamline debt collection and an accurate invoicing system.


 
 
 
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