Eskom's hard-won recovery tested

A turnaround in the finances of Eskom has won praise from investors, but they are keeping their eyes on one issue: the company's struggle to recoup about $5 billion (about R95 billion) in unpaid electricity bills from cities and towns across the country.

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It's a debt pile that continues to mount as municipalities themselves fall behind in collecting revenue from customers.

With R95 billion owed as of November, the arrears could jeopardise Eskom's plans to spin off its distribution unit, a move that it says is key to boosting efficiency and securing investment.

It could also put at risk investors' new-found goodwill toward a company that was seen as a symbol of chronic dysfunction but is now about to turn its first profit in nearly a decade.