Electricity Minister Dr. Kgosientsho Ramokgopa has announced that the South African government is collaborating with provincial authorities to assist financially distressed municipalities in settling their debts with Eskom. This initiative aims to address the escalating financial crisis that threatens both the power utility and local governance structures.
In a recent meeting held in Bloemfontein, Minister Ramokgopa engaged with Free State Members of the Executive Council (MECs) to devise strategies ensuring municipalities fulfill their financial commitments to Eskom. The urgency of the situation is underscored by the staggering figures: municipalities nationwide owe Eskom approximately R100 billion, while these municipalities are, in turn, owed over R380 billion by various consumers. This financial imbalance poses a significant threat to the operational stability of both Eskom and the municipalities.
The Free State province exemplifies this crisis, with its municipalities collectively indebted to Eskom to the tune of R26 billion. This substantial debt has prompted immediate intervention to prevent potential power supply disruptions that could adversely affect residents and businesses in the region.
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(Image: centralnews.co.za)
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