Municipal Debt |
At the end of December 2022 Municipalities owed Eskom R56.3 billion and the debt is rising. Undertaking a debt-relief of this magnitude without addressing this risk would be counterproductive.
We are working with Eskom to provide a solution to this problem, wherein Eskom will provide incentivised relief to municipalities whose debt is unaffordable.
However, the relief will come with conditions.
And to avoid a repeat of debt build-up over time, the relief will attach measures, including the installation of prepaid meters, to correct the underlying behaviour of nonpayment and operational practices in these municipalities.
Eskom’s long-term financial viability depends on its customers paying their dues.
National Treasury will publish details for accessing the debt relief in a circular in March 2023. Implementation will start from 1 April.
More generally, the culture of non-payment, not only by municipalities but by all organs of state and individual household customers is concerning.
Such behaviour undermines and cripples our institutions and makes it impossible for them to deliver services.
To change this, the National Treasury is exploring ways to encourage all to improve their behaviour and do the right thing.
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Energy - Fiscal Support Package