Eskom says failure by 16 Free State municipalities, including Mangaung Metropolitan Municipality to pay for bulk electricity supplies is making it difficult for the national power utility to ensure service delivery and keep its equipment in good working order.
The municipalities jointly owe Eskom over R17 billion for power supplies as at the end of August 2022.
This was after an increase of R2.6 billion since August 2021.
“It is extremely difficult for Eskom to continue absorbing the shortfall and continue infrastructure expenditure to supply these non-paying municipalities,” said Eskom’s general manager for the central-east cluster which includes the Free State and KwaZulu-Natal.
“It is unfair and unjust for delinquent Free State municipalities to expect Eskom to provide electricity at no cost to them, especially while the country is facing supply constraints,” added Mlambo in a statement issued on Tuesday.
She said municipalities have a constitutional responsibility and a Municipal Finance Management Act compliance obligation and duty, not only to Eskom but to their customers, to fulfil their financial obligations for the bulk supply of electricity.
The top three owing municipalities, Maluti A Phofung, Matjhabeng and Ngwathe Local Municipalities, on average consume R200-million for 97 GigaWatt hours of energy monthly.
To date, says Mlambo, these municipalities have brazenly increased their debt to Eskom to R13.3-billion.
Eskom supplies electricity monthly in bulk to several municipalities across the country and they then sell the power at a profit to customers.
In addition, municipalities receive government grants to cover for the Free Basic Electricity given to indigent households.
But despite this, according to the power company, the municipalities’ current accounts and arrear debt remain unserviced, bringing Eskom Free State to its knees.
“Even in these trying times, Eskom is expected to provide electricity to these munipalities while maintaining its networks and paying for diesel to ensure security of supply and meet the demand,” the statement from Eskom said.
But on the bright side, Eskom says two municipalities in the province are meeting their monthly obligations on time.
“Metsimaholo Local Municipality is the only municipality in the Free State that maintains a zero balance, and Setsoto Local Municipality continues to honour its current account. We thank them for prioritising their Eskom accounts and wish that there were more municipalities like them in the Free State,” said a concerned Mlambo.
She urged both Eskom and municipal customers to use electricity legally and pay for all services when due because municipal debt puts an immense burden on Eskom’s revenue stream, which negatively affects service delivery.
Below are the Free State municipalities owing Eskom as at 31 August 2022:
| Municipality | Overdue debt | 12 Month consumption/bill | 12 Month total payments |
| Maluti A Phofung | R 6, 838.8 m | R 1, 234.7 m | R 311.6 m |
| Matjhabeng | R 4, 850.8 m | R 910.0 m | R 80.0 m |
| Ngwathe | R 1, 558.5 m | R 337.9 m | R 129.7 m |
| Dihlabeng | R 715.8 m | R 288.5 m | R 106.8 m |
| Moqhaka | R 692.3 m | R 399.9 m | R 150.0 m |
| Nala | R584.4m | R 150.4 m | R 33.9 m |
| Mangaung | R306.6m | R 2,484 m | R 2,134 m |
| Nketoana | R 556.8 m | R 117.8 m | R 1.2 m |
| Mantsopa | R 262.7 m | R 67.3 m | R 31.8 m |
| Tokologo | R 177.2 m | R 44.1 m | R 0.15 m |
| Phumelela | R 164.8 m | R 32.8 m | R 14.2 m |
| Mafube | R 132.8 m | R 130.4 m | R 94.2 m |
| Letsemeng | R 128.8 m | R 48.1 m | R 8.3 m |
| Masilonyana | R 124.4 m | R 46.4 m | R 6.6 m |
| Tswelopele | R 72.0 m | R 45.3 m | R 19.6 m |
| Total | R17,177.6 m | R2,618.9 m | R988.1 m |