Power utility Eskom says it is facing an impending crisis due to municipalities not paying what is owed, with the worst racking up a debt bill in the billions.
Presenting its results for the 2024 financial year, Eskom reported a surge in municipal debt in the year to R74.4 billion, up 27% from the R58.2 billion in FY2023.
However, because the group’s financial results were nine months late, the reported figures don’t tell the whole story. From March 2024 to November 2024, municipal debt surged once again, this time by 28% to R95.4 billion.
The group warned that if nothing is done soon, the debt will continue to skyrocket, with projections reaching as high as R110 billion by March 2025.
Eskom said that the municipal debt issue risks the company as a going concern, as it has a massive impact on its finances.
The top ten defaulting municipalities make up
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