Centlec spokesperson, Lele Mamatu, tells the OFM Business Hour, that those who aren’t servicing their debt will have their lights switched off. 

The local power utility has been on a massive debt collection drive since March 2022 in an effort to ensure that they meet their obligations to Eskom. 

Is it a case of a struggling economy or is there are growing culture of non-payment?

 Mamatu argues there is a prevailing culture of non-payment, particularly when it comes to some of the major retailers in the metro’s hub, Bloemfontein. The province's government departments are also notably in arrears.

Also Read: Bulk of money owed to Centlec by businesses comes from FDC

The Free State Development Corporation (FDC) has previously been reported as one of the utility's biggest defaulters. In March 2022, OFM News reported the entity headquartered in Bloemfontein owed Centlec over R240 million. The province's economic development agency has leased out several of its buildings to businesses, meaning some of this mammoth debt is in fact coming from defaulting small businesses. The OFM Business Hour managed to reach out to one such leasing business for an interview, however management cancelled at the last minute.

Also Read: FDC yet to make a dent in its R240 million debt

There are allegations that the matter between the FDC and Centlec over this debt has now been escalated to the courts for further intervention. This is a developing story.

This comes as Eskom recently revealed that 16 Free State municipalities collectively owe the utility over R17 billion for services rendered. Eskom’s Free State spokesperson, Titi Makhetha, says the amount owed by municipalities has increased by R2.6 billion since August 2021 adding that this is weakening the functioning of the utility. 

#EskomFreeState #MediaStatement

Delinquent Free State municipalities continue to weaken service delivery pic.twitter.com/I7VvdgGba6

— Eskom Hld SOC Ltd (@Eskom_SA) October 11, 2022 ">

#EskomFreeState #MediaStatement

Delinquent Free State municipalities continue to weaken service delivery pic.twitter.com/I7VvdgGba6

— Eskom Hld SOC Ltd (@Eskom_SA) October 11, 2022

 “Despite municipalities receiving government grants for Free Basic Electricity (FBE), their current accounts and arrear debt remain un-serviced, bringing Eskom Free State to its knees" says Makhetha. 

Also Read: R17 billion owed to Eskom by Free State Municipalities

The top three owing municipalities are the Maluti-A-Phofung, Matjhabeng and Ngwathe Local Municipalities. On average, they consume R200 million (97GWh) of energy monthly.  The remaining municipal culprits have been named as: Dihlabeng, Moqhaka, Nala, Mangaung, Nketoana, Mantsopa, Tokologo, Phumelela, Mafube, Letsemeng, Masilonyana and Tswelopele Local Municipalities.

OFM