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Debt owed by municipalities to Eskom escalated by R20bn in the past 15 months, to reach a staggering R94bn. Now even Tshwane and Johannesburg, two of SA’s biggest cities, have joined the frenzy. Their debt to Eskom rose by R5bn each in the past 15 months.
As Eskom CEO Dan Marokane told MPs recently, the situation is spiralling out of control. This raises the question: if most householders’ electricity accounts are on a prepaid metered basis, is there any compelling reason municipalities should not also pay in advance for their bulk electricity?
Instead of effectively “selling” power for free, would it not make more sense for Eskom to reduce the tariffs it charges municipalities and at least ensure receipt of municipal income on a guaranteed prepaid basis?
It could be risky and create tension (and possible blackouts) in some municipalities, which would no longer have the luxury of treating Eskom as a bank offering flexible “overdraft” facilities. Municipalities would have to budget for their electricity purchases in the same way as other private and commercial Eskom customers.
Our present course of indulging profligate, irresponsible towns and cities could ultimately lead to the collapse of electricity supply in SA.
Willem Cronje Cape Town
JOIN THE DISCUSSION: Send us an email with your comments to letters@businesslive.co.za. Letters of more than 300 words will be edited for length. Anonymous correspondence will not be published. Writers should include a daytime telephone number.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
LETTER: Let municipalities buy prepaid power
Debt owed by municipalities to Eskom escalated by R20bn in the past 15 months, to reach a staggering R94bn. Now even Tshwane and Johannesburg, two of SA’s biggest cities, have joined the frenzy. Their debt to Eskom rose by R5bn each in the past 15 months.
As Eskom CEO Dan Marokane told MPs recently, the situation is spiralling out of control. This raises the question: if most householders’ electricity accounts are on a prepaid metered basis, is there any compelling reason municipalities should not also pay in advance for their bulk electricity?
Instead of effectively “selling” power for free, would it not make more sense for Eskom to reduce the tariffs it charges municipalities and at least ensure receipt of municipal income on a guaranteed prepaid basis?
It could be risky and create tension (and possible blackouts) in some municipalities, which would no longer have the luxury of treating Eskom as a bank offering flexible “overdraft” facilities. Municipalities would have to budget for their electricity purchases in the same way as other private and commercial Eskom customers.
Our present course of indulging profligate, irresponsible towns and cities could ultimately lead to the collapse of electricity supply in SA.
Willem Cronje
Cape Town
JOIN THE DISCUSSION: Send us an email with your comments to letters@businesslive.co.za. Letters of more than 300 words will be edited for length. Anonymous correspondence will not be published. Writers should include a daytime telephone number.
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