Municipal debt key obstacle in unbundling and progress – Eskom

Eskom has warned that ballooning municipal debt and ongoing load reduction measures could undo the progress made under the national debt relief programme, undermining both electricity stability and economic recovery.

- Sipho Mabena

According to Eskom acting group executive for distribution Agnes Mlambo’s presentation to the parliament’s portfolio committee on electricity and energy on Friday, municipal debt has rocketed from R20 billion in 2019 to R105 billion in September 2025.

This represented the bulk of Eskom’s total R108 billion outstanding arrears. Despite payment improvements in some areas, she warned that without urgent intervention, Eskom’s distribution division cannot proceed with unbundling, citing municipal defaults as a key impediment.

Mlambo said weak revenue collection, nonexistent maintenance and high electricity losses, caused by illegal connections, were major contributors to the crisis.