(3 minutes read)
· Eskom needs in the current financial year R56 billion or an average of R1 billion per week, from the South African government in order to stay afloat
· This quantum of resources can be reduced by nearly 75% upon municipalities and the residents of Soweto were to pay what they owe to Eskom
Eskom needs in the current financial year R56 billion or an average of R1 billion per week, from the South African government in order to stay afloat. This quantum of resources can be reduced by nearly 75% upon municipalities and the residents of Soweto were to pay what they owe to Eskom. They were major defaulters of the company and their dues are aggregating to a quite a tidy sum, despite writing off nearly R8
billion debt.
Arrears debt owed by municipalities, grew by some 40%. In absolute terms, it peaked to R28 billion at the end of the financial year. The combined R40.8 billion owed by those two groups is equal to 20% of Eskom’s revenues for the current year.
Nearly 21% of Soweto residents now pay their electricity bills, compared to 12.5% the previous year. This improved proportion is also not acceptable.Only 76% of municipalities now pay the bills Eskom sends them as against 96% four years ago. Just ten municipalities are responsible for nearly R20 billion in arrears debt. At the end of March, it counted 45 municipalities that owe it more than R100 million each.
