SA municipalities owe Eskom billions
Civil rights organisation, Afriforum, is concerned about the growing number of local municipalities in the country with outstanding payments on their Eskom accounts.
While the country has seen a week of rolling blackouts, South African municipalities owe the electricity supplier more than R2.3-billion.
According to Afriforum, the outstanding debt adds to the country’s electricity woes.
Afriforum Head of Community Structures, Tiaan Esterhuizen, said the organisation wants to know where the money is going.
“Taxpayers pay their accounts every month but are left without power as a result of poor financial management by municipalities,” said Esterhuizen.
“The growing debt can lead to a decision by Eskom to cut bulk electricity supply to towns. Should municipalities fail to settle their debts, Eskom will be left with no other alternative.”
Esterhuizen concludes that municipalities that fail to pay their accounts, should have their licenses to supply electricity revoked.
Afriforum believes that privatising electricity management will eliminate the impact of inept municipalities, which will solve problems with electricity supply.
Privatising electricity supply will also streamline debt collection and an accurate invoicing system.
