Madibeng owes Eskom over R1 billion
The Madibeng Municipality owes Eskom over R1 billion, the power utility told Kormorant this week.
This follows after Eskom recently announced that 11 municipalities in the North West owe it over R7.5 billion.
According to Eskom, Madibeng Municipality’s total debt is R1,044,826,245.28. R976,720,807.56 is overdue and its current account is R68,105,437.72. The municipality paid R1 million in August 2024.
Eskom spokesperson in North West Ezekiel Baruti said Eskom has managed to make arrangements with only one municipality while the other 10 municipalities are participating in the municipal debt relief programme to support them in dealing with historical debt while focusing on the current account. If a municipality fails to pay, Eskom will embark on a mediation process and if everything fails in mediation, we will consider the legal route.”
Madibeng Municipality said this week that Eskom approved debt relief for the municipality. “Therefore R485 million has been ringfenced for possible write-off over a period of three years. The Municipality has a payment arrangement approved by Council and accepted by Eskom who we are servicing,” said spokesperson Tumelo Tshabalala.
Municipal debt remains one of Eskom’s biggest challenges, the power utility said. As of the end of March 2024, municipal arrears stood at around R74.4 billion, with an increase of approximately R15.9 billion during the last financial year (1 April 2023 to 30 March 2024).
“Collecting municipal debt is a key focus for Eskom. The company will employ various strategies to recover owed funds, enabling investment in maintaining and strengthening electricity supply, fostering socio-economic growth, and reducing the need for interventions such as load shedding.”