Eskom caught in debt trap

Eskom is continuing its fight to shut off electricity to municipalities that will not pay up the billions of rands they owe the state-owned power utility.

Eskom appealed the ruling, arguing that it is entitled to interrupt the power supply to defaulting municipalities as a way to collect outstanding debt. that municipal debt, as at July 31, stood at R31-billion. This was up from the R19.9-billion owed to it last year. , told the standing committee on appropriations that just 20 municipalities make up 81.25% of the debt.

But business watchdog Sakeliga said Eskom’s power interruption to indebted municipalities affected customers who paid the municipality for electricity. It argued that cutting off the electricity supply was unconstitutional and unlawful. Sekaliga said the power utility had not explored all avenues of relief available before instituting power interruptions.

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