Johannesburg - Up to 4% of Eskom's electricity was stolen last year. At the same time the power utility's debtors' book increased by 46% and provision for bad debts by 56%.
Erica Johnson, the head of networks and client services at Eskom, says the increase in consumer indebtedness is mainly owing to increases in electricity tariffs and the economic downturn, which is impacting consumers' pockets.
In 2007/08 Eskom's debtors' book totalled R5.6bn and in 2008/09 it rose to R8.2bn, while this year's provision for bad debts is R2.8bn.
According to Johnson, these figures mainly reflect residential consumers of electricity. "And these consumers in turn are mainly situated in two Eskom areas, Ekhurhuleni and Soweto." The figures also relate only to consumers receiving their electricity direct from Eskom.
Concern about Eskom's ability to collect these debts is increasing since the company will again be approaching the National Energy Regulator (Nersa) for further tariff increases before the end of September.
Eskom received an electricity hike of 27% in 2007/08, followed by another of 31% in 2008/09, and the expectation is that the Eskom will now apply for a tariff increase of at least 40% for 2009/10.
The latest application will mean that the tariff will have been increased by 100% in the past three years.
Tembani Bukula, Nersa's head of electricity, says the regulator is very concerned about Eskom's ability to collect what it is owed.
"Eskom's write-offs with regard to non-technical power losses rose by R100m this year. Non-technical losses consist of three things: people who steal electricity, electricity meters that do not work properly and debts that are not collected." Bukula says Eskom must step up its collections.
"With the coming tariff application we will strongly emphasise this aspect of Eskom's operations.
"Nersa cannot permit Eskom to simply let its debtors' book grow unchecked."
The utility reported that 9 556 gigawatt hours (GWh) of electricity had been stolen in the past year, a direct loss of some R40m.
It also declared a loss of R9.7bn for the current financial year.
Mike Schüssler, a director at Economists.co.za, says Eskom is under pressure on all fronts.
"On the one hand it's the large industrial consumers with long-term contracts that received cheap electricity, and on the other hand it's residential users who are increasingly struggling to pay for electricity."
Schüssler says South Africans who meet their obligations will only have limited capacity to subsidise those who do not.
"You could soon arrive at a situation where there is no longer any motivation whatsoever to pay, because your neighbour who does not pay is getting away with it.
"One of these days, everyone will want free electricity."
Schüssler reckons South Africans' bad-debt levels currently run to some R125bn, more than 5% of the gross domestic product.
Solidarity deputy general secretary Dirk Hermann says the money owed by state departments and municipalities must also be disclosed. These entities are heavily indebted, to Eskom as well, which means South Africans are effectively being taxed double, he alleges.
According to Schüssler municipalities are currently up to R37bn in the red.
Hermann says Solidarity will soon ask the public protector to investigate their levels of indebtedness.
Eskom spokesperson Andrew Etzinger reckons debt collection is a priority for Eskom and he confirmed that the utility is taking active steps against non-payers.
- Sake24