Staff Reporter
The Minister of Electricity and Energy, Dr. Kgosientsho Ramokgopa, has held a meeting with the Acting Premier of the Free State, the Mayor and Municipal Manager of Tokologo Local Municipality, and Eskom representatives to address the issue of municipal debt.
The meeting, held on Thursday at the Boshof Town Hall in the Free State, was aimed at resolving Tokologo Local Municipality’s financial challenges with Eskom.
The municipality owes the power entity R328 million.
With municipal electricity debt to Eskom now at an estimated R92 billion, Ramokgopa said there was critical need for urgent action.
He noted that such debt threatens both local government and Eskom’s ability to maintain and improve energy supply.
Smaller municipalities like Tokologo Local Municipality, he said, often face unique challenges in meeting their financial obligations compared to their larger counterparts.
Ramokgopa’s ongoing efforts to address this issue have seen him engage municipalities across the country, including Ditsobotla, Maluti A Phofung, Emfuleni, Johannesburg, Tshwane, and Emalahleni.
Common issues include low revenue collection, billing disputes, and high interest rates on outstanding debts.
The meeting produced tangible steps toward resolving Tokologo’s financial issues with Eskom, including:
- Settlement of Outstanding Municipal Rates and Taxes: Tokologo Municipality will invoice Eskom for unpaid municipal rates and taxes. Eskom has committed to settling this amount without it affecting the municipality’s bulk electricity account.
- Clarification of Current Account Payments: Eskom will issue an invoice for energy charges based solely on metered consumption. Tokologo has agreed to pay the account while disputes are resolved.
- Independent Bill Verification: An independent process will verify the accuracy of Tokologo’s bulk electricity bill. Both parties have committed to abiding by the outcome.
Ramokgopa said these agreements pave the way for resolving longstanding disputes and enhancing service delivery.
The Ministry of Electricity and Energy plans to replicate this collaborative approach with other indebted municipalities to address systemic challenges and improve electricity services across the country.
“This is a step in the right direction toward ensuring municipalities can meet their obligations and communities receive reliable electricity services,” Ramokgopa said.
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