Eskom is owed R50bn by municipalities - This infographic shows which council owes what

The total debt owed to Eskom by municipalities surged by nearly R10-billion between 30 September 2021 and the end of July 2022. As at 31 July 2022, municipal debt to the power utility stood at a staggering R49.7-billion, Daily Maverick has found.

The August month-end results are still being finalised and are not yet available, Eskom spokesperson Sikonathi Mantshantsha said in response to questions from Daily Maverick.

On whether the picture had changed substantially, Mantshantsha said: “Due to continuing low payment levels, the outstanding debt has been steadily increasing monthly.”

Read in Daily Maverick: “Four Western Cape municipalities owe Eskom nearly R256m; only two have payment plans in place” and “City of Tshwane commits to paying R1.6bn debt after Eskom threat to cut power” 

As at 31 July 2022, 96 out of 278 municipalities in SA were indebted to Eskom:

• Northern Cape: 21 municipalities owed a total of R2,983,153,202.


• Free State: 16 municipalities owed a total of R16,753,639,773.


• North West: 11 municipalities owed a total of R3,385,887,130.


• Eastern Cape: 11 municipalities owed a total of R2,364,950,301.


• Mpumalanga: 10 municipalities owed a total of R14,167,394,658.


• Gauteng: eight municipalities owed a total of R8,024,882,108.


• KwaZulu-Natal: eight municipalities owed a total of R764,314,297.


• Limpopo: six municipalities owed a total of R1,062,095,447.


• Western Cape: five municipalities owed a total of R256,094,773.

Together, these 96 municipalities owed a whopping total of R49,762,411,689 to the power utility as at 31 July this year.

 

 

The following municipalities have the highest amount of debt in each province, as at 31 July 2022:

• Free State: Maluti-a-Phofung with R6,739,454,596.


• Mpumalanga: Emalahleni with R6,431,970,123.


• Gauteng: Emfuleni with R4,561,505,380.


• North West: City of Matlosana with R951,858,304.


• Eastern Cape: Enoch Mgijima with R778,561,822.


• Limpopo: Modimolle-Mookgophong with R746,282,577.


• Northern Cape: Kai !Garib with R525,715,087.


• KwaZulu-Natal: Mpofana with R315,591,147.


• Western Cape: Matzikama with R97,019,771.

The debt by local municipalities has been steadily accumulating because Eskom has been lenient in its collection methods over the years, and continued to supply offending municipalities with power — establishing a culture of non-payment. However, without collecting the money owed by municipalities — a crucial part of its revenue — Eskom cannot service its debt load and will be forced to ask the government for more handouts.

 

Daily Maverick reported in May this year that municipal debt to Eskom stood at R40.9-billion at the end of September 2021.

At the time, the Maluti-a-Phofung municipality in the Free State was Eskom’s largest defaulter, owing it R5.9-billion.

As at 31 July 2022, Maluti-a-Phofung municipality was still Eskom’s largest defaulter, owing the power utility R6.7-billion. DM