MUNICIPALITIES IN ARREARS
Eskom defaulter power cuts will hurt economy — Cosatu and chamber
Thirteen municipalities have defaulted on their payments for power from Eskom and are facing scheduled interruptions
Eskom’s decision to interrupt power to about a dozen municipalities would hurt business and cost jobs, the South African Chamber of Commerce (Sacci) and Cosatu warned on Tuesday. Thirteen municipalities have defaulted on their payments for power from Eskom and are facing scheduled interruptions. Combined, about 60 municipalities in the country owe more than R12bn to Eskom. Their financial control weaknesses have placed consumers, most of whom pay their bills, in a precarious position. Eskom said 21 of the 34 municipalities due to undergo scheduled supply interruptions during January had submitted some payment and accompanying payment plans. The affected municipalities are in the North West, Free State, Mpumalanga and Northern Cape. After continuing discussions with Eskom since 2015, some of the indebted municipalities entered into payment agreements with the power utility. However, others continued to default on payments as well as new debt, forcing Eskom to implement the "last reso...
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