“The escalating debt emanates from the zero and short payments dating back to June 2022 and seems to be spiralling out of control. If not contained, the municipal debt has the potential to worsen Eskom's cash flow and liquidity challenges and the ability to continue supplying bulk electricity to the Lesedi local municipality,” Eskom said.
Eskom last month issued a statement expressing concern about the failure by the municipality, whose seat is in Heidelberg in Gauteng, to pay its account in full.
“Regrettably, the municipality has also failed to provide a tangible plan on how it plans to service its debt. Eskom has had several engagements with the municipality to get the local authority to service its debt with the public utility. The engagements have unfortunately proven ineffective,” Eskom said.
The municipality is one of many which has failed to honour its Eskom debt.
Collectively, Eskom is owed about R50bn by municipalities.
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Eskom complains again about Lesedi municipality's R121m arrears
Image: Freddy Mavunda / Business Day
Eskom has once again raised concerns about the perpetual failure of the Lesedi local municipality to pay its bulk electricity account which now stands at R121m.
The power utility said the municipality had failed to service in full its September account of R21m and had made a payment of only R11.6m by October 31. Eskom said the total outstanding balance has since compounded to R121m, which is inclusive of the R112m arrears amount.
“The escalating debt emanates from the zero and short payments dating back to June 2022 and seems to be spiralling out of control. If not contained, the municipal debt has the potential to worsen Eskom's cash flow and liquidity challenges and the ability to continue supplying bulk electricity to the Lesedi local municipality,” Eskom said.
Eskom last month issued a statement expressing concern about the failure by the municipality, whose seat is in Heidelberg in Gauteng, to pay its account in full.
“Regrettably, the municipality has also failed to provide a tangible plan on how it plans to service its debt. Eskom has had several engagements with the municipality to get the local authority to service its debt with the public utility. The engagements have unfortunately proven ineffective,” Eskom said.
The municipality is one of many which has failed to honour its Eskom debt.
Collectively, Eskom is owed about R50bn by municipalities.
TimesLIVE
Support independent journalism by subscribing to the Sunday Times. Just R20 for the first month.
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