The power supplier is expected to brief the committee on it's challenges and give a progress report on recommendations previously made. The utility last month told the Standing Committee on Appropriations that escalating municipal debt remains a huge challenge for the business and that there has been little change in the payment behaviour of municipalities. 

In addition to the debt owed by Soweto, Eskom identified Maluti-A-Phofung Municipality in the Free State as one of the worst offenders, owing it over R4 billion, plus interest. This municipality, alongside Matjhabeng, with a debt of more than R2.3 million, as well as other Free State municipalities, are listed among the worst offenders owing the utility more than R9.8 billion.

OFM News previously reported that during a briefing on its recovery plan before the Public Enterprise Portfolio Committee, the power utility revealed that municipal debt is fast approaching the R30 billion mark, after it increased by more than R8 billion in the last 12 months.

Public Enterprise’s Kgothatso Tlhakudi told the committee that the utility has been meeting conditions set out for the financial support it has been receiving from the national government, but it needs more financial support.

The power supplier said these municipalities and many others across the country urgently needs to come to the table.

Following a briefing with the liquidators of the SA Express on the process of liquidating the airline, the Standing Committee on Public Accounts has announced on Wednesday that it will schedule hearings with former boards of all state-owned entities.

OFM News