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Wednesday, December 6, 2023

Tshwane, Ekurhuleni Owe Eskom 4.7 billion Rand

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Two of South Africa’s biggest municipalities owe the state-owned power utility Eskom a combined 4.7 billion rand ($244 million).

The City of Tshwane, which includes the capital, Pretoria, owes 3.2 billion rand which accumulated in July and August due to erratic payments, Eskom Holdings SOC Ltd. said in a statement on Wednesday.

The industrial hub of Ekurhuleni, which includes the country’s biggest airport east of Johannesburg, is 1.5 billion rand in debt.

“The payment patterns by both municipalities have deteriorated to concerning levels that further threaten Eskom’s liquidity, financial performance, and sustainability,” the utility said. “Despite all the avenues that Eskom has explored to recover what is due to the organization, both municipalities have failed to fully honor their payments and to comply with their electricity supply agreements.”

The debt-laden power company’s financial woes are exacerbated by towns and cities not paying their bills. Electricity Minister Kgosientsho Ramokgopa said in August they owed Eskom a combined 63.2 billion rand.

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