⚡️South Africa’s Eskom faces ‘existential problem’ as local councils fail to pay their bills
South Africa’s government has warned that power utility Eskom is facing an “existential crisis” after the amount of unpaid bills owed by local municipalities surged to a record R95bn ($5.2bn).
Outstanding municipal debt for power has jumped from R74.4bn at the end of March to R95bn currently, and is forecast to hit R110bn by the end of the first quarter. Money owed by the City of Johannesburg, South Africa’s economic powerhouse, jumped by almost 400 per cent.
https://ft.com/content/a2ebf9f5-705f-497a-b2b8-e0a861cb4938
📝 Due to rulings by South African courts, Eskom cannot switch off power to municipalities who fail to pay their debt as it only punishes end-users who have no control over municipal finances.
South Africa’s government has warned that power utility Eskom is facing an “existential crisis” after the amount of unpaid bills owed by local municipalities surged to a record R95bn ($5.2bn).
Outstanding municipal debt for power has jumped from R74.4bn at the end of March to R95bn currently, and is forecast to hit R110bn by the end of the first quarter. Money owed by the City of Johannesburg, South Africa’s economic powerhouse, jumped by almost 400 per cent.
https://ft.com/content/a2ebf9f5-705f-497a-b2b8-e0a861cb4938
📝 Due to rulings by South African courts, Eskom cannot switch off power to municipalities who fail to pay their debt as it only punishes end-users who have no control over municipal finances.