OWN CORRESPONDENT, Johannesburg | Wednesday 3.45pm.
ESKOM, the electricity parastatal, has managed to cut its municipal debt by more than two-thirds in four years, due in part to a tougher stance against defaulting municipalities.
In 1996 it stood at R1,54-billion, but Eskom’s Butana Nkosi said on Wednesday it is now at the R450-million mark.
Nkosi said 82% of this amount is covered by bulk agreements and will be written back when municipalities meet the terms of the agreements. Repayment plans regarding the outstanding amount are in place.
A bulk debt normalisation committee, consisting of several government departments, Eskom and the South African Local Government Association, has been formed to monitor the payment of Eskom’s bulk account by municipalities. Defaulting municipalities are required to appear before the committee where solutions for repayment are found.
“Seven of the 17 municipalities that took advantage of the bulk debt agreement have met their commitments and had their suspense accounts written back. The remainder are honouring their commitments,” said Nkosi.
Eskom has enforced several interventions, including tightening credit control measures, to prevent recurring payment problems. It has also threatened to cut the electricity supply to repeat defaulters.