The Minister of Electricity and Energy, Dr. Kgosientsho Ramokgopa, held a constructive meeting today with the Acting Premier of the Free State, the Mayor of Tokologo Local Municipality, the Municipal Manager, and representatives from Eskom. This engagement aimed to address the critical issue of municipal debt and establish a framework for cooperation between Eskom and municipalities within the processes of inter-governmental relations (IGR).

During the meeting, Minister Ramokgopa underscored the importance of tackling municipal debt as a national priority, particularly highlighting the stark contrasts between larger and smaller municipalities. This comparison illustrates the varying degrees of difficulties municipalities face regarding their obligations to Eskom.

Minister Ramokgopa emphasized that the accumulation of municipal debt not only jeopardizes the financial stability of local governments but also significantly impacts Eskom’s financial liquidity, hindering its ability to maintain and improve the energy supply necessary for all communities.

Currently, electricity municipal debt to Eskom is estimated at R92 billion, indicating the scale of the challenge faced.

Minister Ramokgopa's commitment to addressing municipal debt is evident in his previous engagements with various municipalities, including Ditsobotla (NW), Maluti A Phufong (FS), Emfuleni (GP), Johannesburg (GP), Tshwane (GP), and Emalahleni (MP).

The reasons for these interventions have ranged from municipalities not collecting enough revenue, disputes over the accuracy of Eskom bills, and concerns regarding high interest rates imposed by Eskom on outstanding debts.

Key outcomes from today's meeting include:

1.    Municipal Rates and Taxes Account: Tokologo Municipality will present an invoice to Eskom for outstanding municipal rates and taxes. Eskom has committed to settling this debt, which will not affect the municipality's obligations regarding its bulk account.

2.    Current Account Payment: Eskom will issue an invoice reflecting only the energy charges based on metered consumption. The municipality has agreed to settle the current account pending resolution of any disputes.

3.    Disputed Bill Verification: An independent verification process will be initiated to validate the Bulk Account/Bill. Both Eskom and Tokologo Municipality have committed to adhering to the outcomes of this process. Minister

Ramokgopa emphasized that these discussions mark a significant step towards resolving ongoing disputes and improving service delivery.

By fostering collaboration and understanding between Eskom and municipalities, the Minister is confident that lasting solutions can be found to the challenges of municipal debt, benefiting communities across the country.

The Ministry remains committed to engaging with indebted municipalities nationwide to implement similar interventions, ensuring that all municipalities can meet their obligations to Eskom and provide reliable electricity services to their residents. Further updates will be provided as the implementation of these outcomes progresses.

Media enquiries: 
Tsakane Khambane Spokesperson in the Ministry of Electricity and Energy 
Cell: 082 084 5566 
E-mail: Tsakane.Khambane@dmre.gov.za