Only two municipalities out of the 19 in the Free State remain debt-free as far as their Eskom account is concerned, while the rest are still in the red, owing billions.
The municipalities with a clean bill of health are Setsoto, governed by the ANC, and the coalition-run Metsimaholo. Setsoto services Clocolan, Ficksburg, Marquard and Senekal, while Metsimaholo covers Sasolburg, Oranjeville and Deneysville.
Eskom stated the two municipalities have no overdue accounts and continue servicing their current accounts.
The predicament of the 17 defaulting municipalities again came to light after the National Energy Regulator of South Africa (Nersa) approved Eskom’s 18,65% increase in electricity tariffs, effective from 1 April. The power supplier had applied for a 32% tariff hike for the 2023-’24 year.
The inability of the municipalities to pay up their huge accounts also comes as insufficient power supply continues to hamper economic growth.
Combined, the defaulting municipalities owe Eskom R18 852 442 716,40 in current accounts and R18 373 306 008,29 in overdue accounts.
Eskom laments that the bad debt countrywide obstructs its ability to fulfil its obligation of supplying power without disruption, and it also negatively impacts on cash flow.
The defaulting municipalities are equally blamed for ongoing loadshedding.
The top three defaulters – Ngwathe, Maluti-A-Phofung and Matjhabeng – on average consume R200 million (97 GWh) of energy on a monthly basis.
“There are no new payment arrangements,” said Stefanie Jansen van Rensburg, provincial spokesperson for Eskom.
The culture of non-payment by municipalities saw Letsemeng in Xhariep resorting to legal action to prevent Eskom from cutting supply.
The Constitutional Court ruled with costs and ordered it to pay Eskom.
| Municipality | Total due | Overdue debt |
| Maluti-A-Phofung | R7 278 429 340,88 | R7 186 553 097,49 |
| Matjhabeng | R5 210 715 786,43 | R5 140 414 900,56 |
| Ngwathe | R1 681 153 484,07 | R1 657 690 556,90 |
| Nketoana | R610 487 480,53 | R600 665 750,23 |
| Phumelela | R174 131 053,04 | R171 803 720,39 |
| Mafube | R156 848 660,22 | R148 107 855,83 |
| Nala | R648 257 474,36 | R635 828 635,41 |
| Mantsopa | R292 236 520,94 | R287 124 171,19 |
| Masilonyana | R140 537 846,28 | R137 039 744,84 |
| Tokologo | R198 519 116,17 | R194 947 420,11 |
| Dihlabeng | R829 482 884,48 | R806 294 722,50 |
| Moqhaka | R844 385 688,30 | R812 403 673,17 |
| Tswelopele | R89 983 258,56 | R86 767 442,15 |
| Letsemeng | R145 213 523,00 | R141 412 467,36 |
| Mangaung | R458 320 044,25 | R302 141 615,21 |
| Total | R18 852 442 716,40 | R18 373 306 008,29 |
