About half the 62 defaulting municipalities that had made payment arrangements with Eskom have not complied with those arrangements‚ raising the danger of a rise in municipal debt‚ Eskom chief financial director Anoj Singh said Wednesday.
Municipal debt in March stood at R9bn-R10bn‚ and had been contained after a sharp escalation between March 2016 and September 2016‚ when the debt rose from R6bn to R9bn.
A further escalation to R12bn by end-March 2017 was predicted unless action was taken‚ which was why Eskom turned off the electricity of three or four municipalities.
Payment arrangements were made with the remaining defaulters.
Municipal arrears are rising again‚ Eskom warns
About half the 62 defaulting municipalities that had made payment arrangements with Eskom have not complied with those arrangements‚ raising the danger of a rise in municipal debt‚ Eskom chief financial director Anoj Singh said Wednesday.
Municipal debt in March stood at R9bn-R10bn‚ and had been contained after a sharp escalation between March 2016 and September 2016‚ when the debt rose from R6bn to R9bn.
A further escalation to R12bn by end-March 2017 was predicted unless action was taken‚ which was why Eskom turned off the electricity of three or four municipalities.
Payment arrangements were made with the remaining defaulters.