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"Municipalities owe Eskom billions" Afriforum


 
Afriforum says debt municipalities owe to Eskom has increased by more than R2-billion in the last 12 months and stood at more than R4.6 billion at the end of last year.
Free State municipalities were most in debt, owing a collective R1.6 billion with Eastern Cape municipalities owing R188 million.

Afriforum's Tiaan Esterhuizen said municipalities were very quick to cut power to defaulting customers but were not doing their bit by in turn paying Eskom.

He said this outstanding debt was contributing to the pressure on Eskom's ability to provide electricity.

Esterhuizen says AfriForum believes privatisation of electricity management will cut out incompetent municipalities while at the same time dealing with the problems of electricity supply.


"Afriforum is of the opinion that privatisation of electricity management will cut out the incompetent municipalities and make debt recovery more efficiet" he said


Municipalities' debt by province-

Mpumalanga R1 478 699 504
Limpopo R221 666 382
Free State R1 606 430 495
Gauteng R213 785 845
KZN R63 466 453
Eastern Cape R188 727 702
Western Cape R21 182 475
Northern Cape R142 940 425
Northwest R671 565 715