No more mahala for indebted municipalities, explains acting Eskom boss

Eskom is hopeful that it will be able to recover the billions owed by eight municipalities.

Eskom acting CEO Matshela Koko says the power utility cannot run its service without payment.

Eskom cannot borrow money to generate electricity to give it to municipalities that don't pay... You're going to bankrupt Eskom.

Matshela Koko, Eskom acting CEO

We are expected to recover our cost of sales and we're not doing that.

Matshela Koko, Eskom acting CEO

The power utility wants to recover approximately R10.2 billion in debt from eight defaulting municipalities.

Koko explains that residents will be negatively affected by tariff increases if municipalities are not held accountable.

He says premiers and mayors have met to discuss ways in which to recover money on behalf of the municipalities.

According to Koko, postpaid electricity metres will soon be replaced with prepaid metres in four municipalities that have defaulting residents.

Eskom will interrupt the power supply of owing municipalities five hours a day from January 16, he explains.

Meanwhile, South African National Civic Organisation (Sanco) has called on the Department of Cooperative Governance and Traditional Affairs (Cogta) to place defaulting municipalities owing Eskom under administration.

Koko says he supports Sanco's call.

Take a listen to what he says must be done:


This article first appeared on CapeTalk : No more mahala for indebted municipalities, explains acting Eskom boss


Recommended

by NEWSROOM AI
Read More
Sanco calls for govt intervention in Eskom's municipality debt saga

Sanco calls for govt intervention in Eskom's municipality debt saga

Sanco says placing municipalities under administration may help protect the interests of communities and services like hospitals.

Eskom extends payment deadline for indebted municipalities

Eskom extends payment deadline for indebted municipalities

Eskom has given the eight municipalities that owe outstanding electricity bills until January 16 to make payment arrangements.

The court did well reaffirming Eskom's obligations - expert

The court did well reaffirming Eskom's obligations - expert

Electricity Expert says customers need to exercise their rights and take the matter up with their defaulting municipalities.

Eskom can flip the switch on indebted municipalities, rules court

Eskom can flip the switch on indebted municipalities, rules court

The court ruled that Eskom is within its right to cut power to consumers and municipalities who are not paying for their services.

AfriForum's urgent court application on Eskom thrown out

AfriForum's urgent court application on Eskom thrown out

Judge Hans Fabricius ruled that Eskom is allowed to cut power supply to 8 municipalities to recover billions of rands owed to it.

Eskom has legal obligation to recover its debt - High Court Judge

Eskom has legal obligation to recover its debt - High Court Judge

Judge Hans Fabricius says it's incorrect for AfriForum to say Eskom decided, out of a blue, to disconnect power supply.

Popular articles
Thandeka Gqubule prepared to fight EFF to the end

Thandeka Gqubule prepared to fight EFF to the end

SABC Journalist and part of the SABC 8 Thandeka Gqubule says she has not had any communication from the EFF.

[LISTEN] 'If you accuse, you must present some sort of preliminary evidence'

[LISTEN] 'If you accuse, you must present some sort of preliminary evidence'

Laywer Tebogo Malatji gives an update on Wednesday's meeting between Minster Pravin Gordhan and PP Busisiwe Mkhwebane.

Discovery Bank takes on Capitec Bank, TymeDigital (Patrice Motsepe), Bank Zero

Discovery Bank takes on Capitec Bank, TymeDigital (Patrice Motsepe), Bank Zero

South Africa has a brand-new bank! The Money Show’s Bruce Whitfield interviews Adrian Gore, Discovery Group CEO.

Callers debate Mashaba arresting a man wheeling cow heads in Joburg CBD

Callers debate Mashaba arresting a man wheeling cow heads in Joburg CBD

Mashaba posted a picture of a man pushing a trolly full of cow heads saying that he had him arrested for an "illegal act".

SA is falling in love with Telkom Mobile (6.5m users, 50% up on 6 months ago)

SA is falling in love with Telkom Mobile (6.5m users, 50% up on 6 months ago)

The Money Show’s Bruce Whitfield interviews Telkom Group CEO Sipho Maseko.

Self-driving Merc returns to Chapman’s Peak to beat the bends in stirring new ad

Self-driving Merc returns to Chapman’s Peak to beat the bends in stirring new ad

The Money Show’s Bruce Whitfield interviews branding and advertising expert Andy Rice about Merc's stirring new ad.

#DataMustFall! Meet Rain CEO Willem Roos... he is making it happen

#DataMustFall! Meet Rain CEO Willem Roos... he is making it happen

The Money Show’s Bruce Whitfield interviews Rain CEO Willem Roos for his weekly “ShapeShifter” feature.

Booming economy… cheap beer… great food… Beira is where it’s at, but the taxes!

Booming economy… cheap beer… great food… Beira is where it’s at, but the taxes!

VAT at 17%... yoh! Bruce Whitfield interviews Lee Kasumba, who is exploring Mozambique’s central port city of Beira.