The government says it will take the lead in tackling billions of rands in the municipal debt owed to Eskom, as the power utility grapples with unpaid electricity bills from municipalities.

Electricity and Energy Minister Dr Kgosientsho Ramokgopa says Eskom could take the easier route of enforcing credit control, but warns that widespread cut-offs could have serious consequences for the economy.

He says government is working with National Treasury as well as Cooperative Governance and Traditional Affairs to accelerate debt agreements and help municipalities improve revenue collection.

“We will lead the efforts on municipal debt. A big part of it lies in government. Eskom can choose the easy route by implementing credit control, but we know that’s not desirable because it would have a huge impact on the South African economy. We’re working closely with Treasury and Cogta to accelerate the signing of debt agreements and support municipalities in their efforts to collect,” says Ramokgopa.

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