Most municipalities flouting Eskom debt relief terms, warns utility
Image: Timothy Barnard /Independent Newspapers
Embattled power utility Eskom has revealed that 87% of municipalities approved for National Treasury's municipal debt relief program are failing to meet the conditions required for debt write-offs, with only 10 out of 71 municipalities remaining compliant.
The municipal debt relief program was introduced by National Treasury in 2023 to help municipalities reduce the large debts they owe Eskom. It offers debt write-offs if municipalities pay their current bills consistently and meet certain conditions.
Despite measures like reducing interest and payment plans, Eskom says municipal debt has kept growing and now stands at about R94.6 billion and warned that ongoing non-compliance poses a significant risk to its liquidity and overall operations.
The state-owned power utility made these disclosures while briefing Parliament's Standing Committee on Appropriations on its finances on Tuesday.
"So this covers the national debt relief program. So just in summary, 71 municipalities, were approved. And right now, we are only sitting with 10 compliant, municipalities,". Rajen Naidoo, Eskom's General Manager for Finance said.
"The sad situation that we find ourselves in is that even municipalities that were approved did not even honour their current bill, some of them from month one of the program. So it's it it's only these 10, municipalities if they are compliant, in terms of how the program works,".
Video Player is loading.
Play Video
Play
Unmute
Current Time
0:00
/
Duration
-:-
Loaded :
0%
Stream Type LIVE
Seek to live, currently behind live
LIVE
Remaining Time
-
0:00
This is a modal window.
Beginning of dialog window. Escape will cancel and close the window.
Text Color White Black Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Transparent Semi-Transparent Opaque
Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps
Reset
restore all settings to the default values Done
Close Modal Dialog
End of dialog window.
Advertisement
Next
Stay
Close ✕
Ad loading
Eskom CFO Calib Cassim emphasised that the purpose of the Eskom Debt Relief Amendment Bill was to place power utility on a sustainable financial footing, reducing the need for future bailouts from the National Treasury.
Committee Chairperson Mmusi Maimane stressed that Eskom plays an important role and that its money problems and the growing municipal debt are key issues for the committee when deciding on funding.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Citizen
4 hours ago
- The Citizen
Cybersecurity an ‘economic and safety imperative'
Last month, National Treasury confirmed that it found malware on its Infrastructure Reporting Model website. A risk strategy firm says cybersecurity is not just a technical concern, but an economic and safety imperative. The firm was responding to the recent large-scale software hack, which impacted millions worldwide, including businesses and the National Treasury in South Africa. Treasury attack Last month, National Treasury confirmed that it found malware on its Infrastructure Reporting Model website, an online infrastructure reporting and monitoring system. It said the issue was related to the recent attacks on SharePoint, a widely used web-based platform developed by Microsoft for collaboration and document management. Commenting on the hack, Spiros Fatouros, CEO of Marsh McLennan Africa and South Africa, said emerging technologies are fuelling new vulnerabilities, with hackers using them to carry out larger and more sophisticated attacks than ever before. 'Because modern software and systems are so well integrated, one system's weak spot can allow access to vast amounts of highly sensitive or confidential data. 'With over 400 businesses, entities, and government departments from around the world impacted by the attacks, it will take time to fully assess the extent of the breach and the types of data accessed by hackers,' he said. ALSO READ: South Africa remains a global hotspot for data breaches WEF golbal risks report The World Economic Forum (WEF) 2025 Global Risks Report identified cyber risks as a major threat to economic stability. In recognition of this, the South African government earlier this month moved to include cyber risks in its National Security Strategy. The Global Risk Report also highlights the interconnectedness of risks, with cyber threats closely linked to geopolitical risks, supply chain disruptions, illicit activity and conflict. Cyber risk Fatouros said effective cyber risk management demands a multi-layered approach that includes technical defences, secure data storage, staff training and the inclusion of cybersecurity professionals from the start of any new technology project. He said businesses must also have plans and processes in place to limit data and economic losses, reduce reputational harm and recover quickly in the event of a breach. Microsoft issued patches for two versions of the software, noting that one, SharePoint 2016, remains vulnerable to attacks. READ NEXT: Data breaches cost SA organisations over R360m in 3 years
IOL News
4 hours ago
- IOL News
Eskom's clean energy era begins with 291MW solar drive
Eskom continues to develop a balanced energy mix, including coal, nuclear, gas, renewables, and energy storage solutions such as battery energy storage systems and pumped hydro. Image: Matt McClain | The Washington Post Eskom has taken a major step in shifting South Africa's energy mix with the launch of its first Renewable Energy Offtake Programme. The initiative invites large power users to procure 291MW of solar photovoltaic (PV) capacity through long-term power purchase agreements (PPAs) from Eskom-owned renewable energy sites. The programme follows an expression of interest process and extensive engagement with commercial and industrial customers, which showed strong demand for direct contracting through PPAs. These agreements allow businesses to align with global sustainability standards, reduce carbon footprints, and green supply chains, boosting competitiveness. Electricity generation and distribution both showed slight declines in June 2025 compared with the same period last year, although overall output and consumption edged up in the second quarter compared with the first. The launch of the offtake programme, particularly focused on solar PV, is part of Eskom's push to stabilise supply while increasing renewable capacity. Crown Prince Adil Nchabeleng, independent energy expert, has estimated that less than 1% of households have solar, making the point that most solar subsidies have gone to big businesses and not households. He added that the subsidies were limited to panels and didn't include other aspects such as batteries. In a world where energy dynamics are constantly shifting, Sakhile Ngcongwane, Business Development Manager at SolarAfrica, said that renewable energy is no longer confined to the simplistic installation of a few rooftop panels. Successful bidders will enter PPAs ranging from five to 25 years, with energy delivered in phases from multiple Eskom projects. The first project is expected to reach commercial operation by December 2027. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad Loading 'This is the next step in the focused execution of our strategy to integrate additional renewable energy into the grid, in line with global electricity industry trends for environmentally sustainable solutions,' said Eskom CEO Dan Marokane. Marokane noted that, 'just over a year into our turnaround strategy, we are not only focused on ending loadshedding but are also pivoting Eskom into a sustainable and competitive company while ensuring security of supply through a customer-centric approach'. Eskom Distribution acting group executive Agnes Mlambo added, 'by offering customised renewable energy offtake solutions, we are enabling our customers to transition to low-carbon operations while ensuring a secure and competitive supply. Engaging with the private sector in this structured manner gives impetus to Eskom's efforts to create a sustainable pathway for clean power integration into the grid.' Eskom continues to develop a balanced energy mix, including coal, nuclear, gas, renewables, and energy storage solutions such as battery energy storage systems and pumped hydro. A dedicated renewable energy business will accelerate deployment, targeting 2GW of construction-ready projects by 2026 and scaling up to 32GW, including Green Hydrogen, by 2040. IOL Business
The Citizen
8 hours ago
- The Citizen
Eskom launches Renewable Energy Programme to make SA green
Eskom said it has issued a Request for Proposal inviting large power users to procure 291MW of Solar Photovoltaic capacity. Eskom has launched what it calls the first-ever Renewable Energy Offtake Programme to boost the use of green power, transitioning its generation mix from predominantly coal to a blended portfolio with an increasing proportion of clean energy sources. The parastatal said the initiative is part of its strategic objective to facilitate a 'competitive future energy industry'. RFP Eskom said it has issued a Request for Proposal (RFP), inviting large power users to procure 291MW of Solar Photovoltaic (PV) capacity through long-term Power Purchase Agreements (PPAs) from Eskom-owned renewable energy sites. 'Successful bidders will enter PPAs ranging from 5 to 25 years, with renewable energy delivered in phases from multiple Eskom projects. The earliest project is expected to reach commercial operation by December 2027.' ALSO READ: Electricity demand 'met 97% of the time' this winter, Eskom says Renewable energy Eskom Group Chief Executive, Dan Marokane, said the programme is a step forward in renewable energy. 'This is the next step in the focused execution of our strategy to integrate additional renewable energy into the grid, in line with global electricity industry trends for environmentally sustainable solutions that support broader decarbonisation objectives. 'Just over a year into our turnaround strategy, we are not only focused on ending load shedding but are also pivoting Eskom into a sustainable and competitive company while ensuring security of supply through a customer-centric approach,' said Marokane. Making SA green Last year, President Cyril Ramaphosa spoke about making South Africa greener during his opening of Parliament address. 'As we undertake a just transition towards renewable energy, South Africa must create a green manufacturing sector centred on the export of green hydrogen and associated products, electric vehicles and renewable energy components. 'Work is underway to set up a Special Economic Zone in Boegoebaai to drive investment in green hydrogen energy projects,' Ramaphosa said. Sun power Ramaphosa also discussed harnessing the sun's power, which would significantly ease the energy crisis. 'South Africa has some of the best solar and wind resources in the world…Just this week, we saw the largest-ever private energy project connect to the grid near Lichtenburg in the North West, with over 390,000 solar panels that will add 256 MW to the grid.' Eskom said a dedicated renewable energy business will accelerate deployment, targeting 2GW of construction-ready projects by 2026 and scaling up to 32GW, including Green Hydrogen, by 2040. ALSO READ: Ramaphosa commits to work with Portugal on renewable energy
