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In a drastic move to recover outstanding debt, Eskom has attached Emfuleni Municipality’s bank accounts to secure payment of R8 billion in arrear debt. The municipality’s failure to comply with the Debt Relief Program and repeated breaches of the Municipal Finance Management Act led to this action.
The attachment of the bank accounts enables Eskom to receive direct payment for electricity supplied, ensuring continued service to customers. Despite exhausting legal and mediation avenues, Emfuleni has not paid for bulk electricity since 2018.
Eskom emphasizes that collecting municipal debt is crucial for maintaining and strengthening electricity supply, promoting socio-economic growth, and reducing the need for loadshedding. The municipality’s debt compromises Eskom’s financial stability and ability to provide affordable electricity.
As of August 31, Emfuleni’s debt stood at R8,052,093,269.36, representing approximately 10% of the total R82 billion owed by municipalities. Municipal arrears have increased by R15.9 billion in the last financial year, posing a significant challenge for Eskom.
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