Municipalities owe Eskom billions - AfriForum
Fin24

Municipalities owe Eskom billions - AfriForum

2014-03-11 19:20

Johannesburg - Power utility Eskom was owed more than R2.3bn by various municipalities, civil rights organisation AfriForum said on Tuesday.

"Municipalities owe Eskom more than R2.3bn", spokesperson Tiaan Esterhuizen said in a statement.

"The outstanding debt adds to the country's electricity woes."

He said Mpumalanga's municipal debt to Eskom was more than R800m, while municipalities in the Free State owed more than R570m.

"Taxpayers pay their accounts every month but are left without power as a result of poor financial management by municipalities," said Esterhuizen.

On Tuesday, Eskom CEO Brian Dames said the country's power supply remained constrained.

The power utility introduced emergency rostered power cuts, called load shedding, to prevent a collapse of the national power grid because coal supplies for electricity generators were wet.

Esterhuizen said municipalities that failed to pay their accounts should have their licenses to supply electricity revoked.

He said electricity management should be privatised.

"AfriForum believes that privatising electricity management will eliminate the impact of inept municipalities, and solve problems with electricity supply. Privatisation will also streamline debt collection and an accurate invoicing system."

Comment from co-operative governance spokesperson Botshelo Rakate could not be obtained.

Comments
  • Mike Bosman - 2014-03-11 20:19

    Brought to u by the anc.

  • Carpenter - 2014-03-11 20:23

    And instead of collecting the outstanding funds, let's up the rate for those who pay

      Imagine Sense - 2014-03-11 20:40

      Exactly. But you forget that "our people" must get everything for free. Its just those other bad guys that must pay.

      Deeked De Dose - 2014-03-12 11:49

      It is aparheids fault?

  • Naas Du Plessis - 2014-03-11 20:40

    I like how everything is mismanaged but always apartheid gets the blame for people's action. The zanc is really screwing stuff up.

  • Soula Foord - 2014-03-11 21:01

    How come if I dont pay they cut off?

      Konstabel Koekemoer - 2014-03-12 09:59

      Illegal connections, and municiplaities cannot be cut as many of the residents have paid but due to mismanagement and corruption the money never gets paid to Eskom. And of course all the municipalities that are not paying are run by the ANC.

  • Hanno Van Helsdingen - 2014-03-11 21:25

    Please take the power away from municipalities. Everyone should buy direct from Eskom at reduced fees....pls implement immediately.

      Fair Play - 2014-03-11 22:10

      I Agree. We pay the municipality more than double the Eskom rate per kilowatt

      Konstabel Koekemoer - 2014-03-12 10:00

      So true, and municiplaities % increases have mostly been higher than the Eskom increases in the last few years.

  • Lassi MShini - 2014-03-11 21:45

    Eskom nd Municipalities need to deal with in-house criminals who are working with criminals selling electricity @ half price to communities. The in-house criminals are supplying this guys with software nd machines to produce electricity tokens, the business is so huge that it serves many provinces. Eskom has tried to improve nd changed their software but de syndicate is always a step ahead bcos the criminals are always supplied with de new software. Until eskom identify those individuals de problem is unlikely to stop.

      Joe - 2014-03-19 22:06

      Hectic...

  • Zeenat Allie - 2014-03-11 22:24

    Privatization of Eskom should never occur. Inept maladministration should not be the deciding factor in allowing the national service provider, to be privatized. Standup and vote, let your voice be heard that this lot of corrupt and clueless idiots be held accountable to the people irrespective of race colour or creed. In true spirit of "Sizwe"...let's seize the moment and get rid of this clueless Nationalist Congress... A far cry from the ANC we put into power. AMANDLA!

      Deeked De Dose - 2014-03-12 11:52

      Why shouldn't utilities be privatised like the rest of the world? The at least someone would be accountable...

  • louis.elst - 2014-03-11 22:31

    Electricity suppliers should supply power direct every house should have a meter and you pay accordingly That is how it should work ,you don't pay you don't have power Municipalities squander the funds due to miss management

  • rowan.torr.9 - 2014-03-11 23:03

    R800 mil outstanding in Mpumalanga? Honest people always pay but are the hardest hit.. Get rid of politics at council level. Let local government become a government of the people by competent people.

  • George Gibbs - 2014-03-12 02:09

    And again this year there will be increase on the cost of electricity. If these people paid maybe we could have some financial relief! What is this government doing about this, nothing cause they to busy stealing our money and getting awY with it!

  • Sisie Indola - 2014-03-12 07:29

    You know i always had this impression that you pay all your debts (payments) first and with what you have left you can play and live. I obviously have it the wrong way round. Why aren't these municipalities paying their bills to ESKOM or is that just a no brainer.

  • Jason Marriott - 2014-03-12 07:41

    Just would like to know what parties are guilty here? And how many of these multiplicities that owe how much they spending on cars and other crap.

  • CliveK - 2014-03-12 08:11

    As the overwhelming majority of municipalities are run (into the ground) by ANC cadres, is this any great surprise?

      CliveK - 2014-03-12 08:13

      And, by the way, I understand that there has never been a prosecution for electricity theft.

  • Colin Murray - 2014-03-12 12:28

    It is about time Eksdom named and shamed all these municipalities who owe them for electricity. Then just maybe they will pay up. If my municipal account is late they will be around and disconnect us. Is it a case of "don't do as I do, do as I say"?

  • arthur.salvado - 2014-03-14 09:16

    What is it that this government cannot break and steal. Where's the money ? I'll tell you. Cats, houses, overseas holidays including family and friends, KFC and in their POCKETS. Does it take a tax revolt to stop these scumbags ??

  • Margaret Patricia Meek - 2014-10-30 22:13

    Why can't we pay to ESKOM direct.

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