By Levy Masiteng
Nine municipalities across South Africa have taken a step towards resolving their electricity debt crisis after adopting council resolutions to sign Distribution Agency Agreements (DAAs) with Eskom following a consultation process initiated earlier this year.
The move comes as Eskom revealed that outstanding municipal debt has ballooned to R111.6 billion nationally, despite repeated interventions by National Treasury and support measures offered by the power utility.
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In a statement issued this week, Eskom said the agreements followed consultations after notices were served in March to 14 municipalities in terms of the Promotion of Administrative Justice Act (PAJA).
“The municipalities were identified for failing to settle electricity accounts for at least 18 months, not complying with the National Treasury municipal debt relief programme, or posing a major financial risk to Eskom,” the utility said.
The nine municipalities are:
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