Municipal debt climbs

R105 BILLION: AMOUNT OWED TO ESKOM IS SPIRALLING RAPIDLY

- Jarryd Westerdale

The billions in debt owed to Eskom are more the fault of municipalities than that of consumers, despite high electricity costs.

The Presidency’s specialist team tasked with addressing South Africa’s electricity situation made this assertion to the portfolio committee on electricity and energy as members questioned proposed recovery plans.

Some R105 billion is owed to Eskom, with the entity last week confirming to the portfolio committee that roughly R62.2 billion of that would likely be written off under new distribution agency agreements.

The national energy crisis committee (Necom) yesterday presented an update on its work to reform South Africa’s electricity distribution.

Portfolio committee member and former Eskom CEO Brian Molefe questioned whether the debt levels were accurately compiled, due to differences in accounting and distribution monitoring.