Municipalities owe Eskom more than R10bn – Gordhan
State-owned power utility Eskom was owed about R10.85-billion by local municipalities as at the end of June this year, Cooperative Governance and Traditional Affairs Minister Pravin Gordhan has revealed in a written reply to a question asked by the Inkatha Freedom Party.
Gauteng municipalities owed the utility the highest amount, a collective R3.47-billion, with the greater Johannesburg municipality owing R52.97-million, the City of Tshwane R793.35-million and the Ekurhuleni metropolitan council R972.34-million.
Utilities Johannesburg Water and City Power Johannesburg owed R5.43-million and R1.08-billion respectively.
Further, amounts owed to Eskom by municipalities amounted to R1.27-billion each for the Western Cape and KwaZulu-Natal. The City of Cape Town metropolitan and the eThekwini metropolitan municipalities had outstanding payments of R873.14-million and R813.38-million respectively.
Municipalities in the Free State owed R1.53-billion, while those in Mpumalanga owed R1.36-billion.
Municipalities in the Eastern Cape, the North West and Limpopo owed R650-million, R764.36-million and R314.84-million respectively.
The Northern Cape had the lowest debt to Eskom, with municipalities owing about R225.99-million.
Gordhan said the Department of Cooperative Governance and Traditional Affairs was engaging with all parties concerned to find a constructive solution to the challenge.
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