On Wednesday 8 March 2017, Eskom made a presentation on defaulting municipalities to the Standing Committee on Appropriations. Eskom followed the Promotion of Administrative Justice Act process and applied to the High Court to be allowed to cut electricity to municipalities who were owing R10.2 billion to Eskom. On 5 January 2017 the High Court ruled that Eskom may interrupt municipalities for non-payment.
The overdue debt, including interest, had increased to R9.9 billion at the end of January 2017.
According to Eskom top 20 overdue municipalities are overdue by R7.5 billion and 104 municipalities have overdue debt in excess of R500 000. Eight municipalities have been interrupted according to the PAJA process since 16 January 2017. Moving municipalities from post payment to prepaid meters was identified as a sustainable solution.
Total debt owed to Eskom by small power users nationally totals R13.2 billion. Of all the Eskom supplied areas, Soweto has the largest outstanding debt (R12.1 billion), i.e. 91% of small power user debt. Eskom’s debt collection efforts have been focused on Soweto and their year to date Smart meter results show 10 071 meters installed, 10 404 meters converted to prepaid and the disconnection of 17 350 customers.
More interesting facts:
- Top 10 defaulting municipalities are overdue by R6.2 billion
- 66 Municipalities are overdue by more than R10 million
- Free State, Mpumalanga and the North West are responsible for 7.6 billion of overdue debt
- R8.6 billion of the R9.9 billion debt is overdue by more than 90 days
See infographic for more: