State must write off unpayable R100bn municipal Eskom debt, economist says

Utility reveals that debt ballooned to R98.5bn in February from R74bn in March 2024.

- By Mpho Sibanyoni

The state needs to write off almost R100-billion debt that municipalities owe to Eskom. In addition, government should inject human resource capacity while also increasing the national budget allocation for municipalities.

Economist Duma Gqubule said this after Eskom revealed that municipal debt had ballooned to R98,5-billion in February 2025 from R74-billion in March 2024.

The state-owned entity warned that if there is no change in the status quo, this trend would impede Eskom’s financial stability.

The power distribution, transmission and generation monopoly noted that the gains from the debt relief programme aimed at reducing its overall debt from R400-billion to R250-billion could be neutralised within three years if the rising municipal debt trajectory is not curtailed. The parastatal raised concern that the significant growth in debt was attributable to provinces like Free State and Mpumalanga.

This emerged during the portfolio committee on electricity and energy week-long oversight meeting in Gauteng.