- Minister Ramokgopa named Emalahleni Local Municipality in Mpumalanga as Eskom's single largest municipal debtor
- The minister responded to parliamentary questions about municipal arrears, revealing the scale of non-payment across South Africa
- Total municipal debt owed to Eskom could balloon to R358 billion by 2031 if no action is taken
Source: Getty Images
MPUMALANGA — Minister of Electricity and Energy Kgosientsho Ramokgopa confirmed that Mpumalanga's Emalahleni Local Municipality holds the highest outstanding balance with Eskom. The local council accumulated R13.6 billion in unpaid bills as of 31 August 2026.
According to parliamentary documentation, Ramokgopa provided details after uMkhonto weSizwe Party representative Adil Nchabeleng submitted questions concerning defaulting councils and recovery deadlines. Ramokgopa indicated that local government arrears endanger the state utility's future viability, cautioning that uncollected revenue could top R358 billion before 2031 if left unaddressed.
Measures introduced to retrieve municipal funds
Ramokgopa explained that 83 local authorities face active collection actions, with 71 signed onto National Treasury's debt relief scheme. Among those 71 enrolled entities, merely 10 maintain complete monthly payments for current usage.
To secure missing revenue, Eskom relies on Distribution Agency Agreements to take over customer invoicing, handle cash collections, and deliver operational guidance. Ramokgopa mentioned that the City of Johannesburg cleared its total outstanding balance, whereas other defaulting councils receive options for restructured repayment schedules and adjusted terms to settle historical obligations. This was after it owed Eskom over R5.2 billion, prompting a formal notice to reduce or cut electricity supply points in May.
Eskom municipal debt reaches R110 billion
In a related article, Briefly News reported on municipal debt to Eskom, which has exceeded R110 billion and is projected to reach R358 billion by 2031. Electricity and Energy Minister Kgosientsho Ramokgopa warned that the growing arrears could threaten the country’s electricity market reforms.
Eskom’s generation now exceeds national demand, but municipalities’ unpaid bills are creating a new financial risk for the utility. The scale of the projected debt raises questions about whether government interventions can prevent the crisis from undermining those gains.
Source: Briefly News
Authors:
Tags:
Hot: