Municipal debt to Eskom growing by an average of R3 billion a month — Ramokgopa

Electricity and Energy Minister Kgosientsho Ramokgopa has sounded the alarm over the rising municipal debt owed to Eskom, warning that it is increasing by approximately R3 billion every month.

The minister’s comments come as Eskom continues to face mounting financial pressure, with total municipal debt now standing at around R94.6 billion.

IOL previously reported that embattled power utility Eskom also revealed that 87% of municipalities approved for National Treasury’s municipal debt relief program are failing to meet the conditions required for debt write-offs, with only 10 out of 71 municipalities remaining compliant.

This is despite efforts by Eskom to ease the burden through measures such as reduced interest rates and structured payment plans. The utility has warned that persistent non-compliance poses a serious risk to its liquidity and overall operational sustainability.

During a media briefing on Tuesday, where he addressed the billing dispute between Eskom and City Power, Ramokgopa emphasised the situation was getting worse.

“We know that the debt of municipalities to Eskom is growing on average R3 billion per month,” he said. “By the end of this year, compared to the beginning, Eskom will be owed an additional R36 billion. There is only so much Eskom can absorb.” Ramokgopa said.

The minister also mentioned that electricity in the country was becoming excessively expensive and added that the government was reviewing the price policing policy.

"Electricity is unaffordable; we can't continue along this tariff path. We are getting to a situation in the country where we see new dimensions of energy poverty. "There are households today as I speak to you who will not be able to afford the cost of electricity, so poor households have to make choices between a loaf of bread or prepaid units"

mthobisi.nozulela@iol.co.za

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