'Can we safely assume that the Soweto Eskom electricity debt is also scrapped'- Lesufi

Following the government’s commitment to pay billions to settle Sanral’s e-toll debt, Gauteng Premier Panyaza Lesufi wants Soweto’s nearly R5 billion debt to Eskom cancelled.

The Premier went on twitter and wrote, “Minister Godongwana, we truly appreciate how you respect negotiations. Can we safely assume that the Soweto Eskom electricity debt and that of other townships is also scrapped as per our intensive lobby?” 

According to Lesufi, immediate debt relief is required for the development of “townships,” informal settlements, and hostels.

“Our argument remains, if Eskom debt is taken over by the central government, what our people owe Eskom in townships, informal settlements and hostels must also be scrapped. We need to reposition our townships, informal settlements and hostels so that they can be centres of growth.”

Eskom has already written off billions in unpaid electricity bills in Soweto – nearly R8 billion in overdue debt was written off in 2020 alone.

Soweto owed the power utility R4.7 billion as of September 30, 2022, the utility confirmed on Friday.

Municipal debt has been one of Eskom’s most significant balance-sheet challenges. As of August 31, 2022, Eskom owed more than R51 billion.

Eskom stated that the National Treasury and the Department of Public Enterprises are collaborating on a solution for unpaid municipal debt.

Eskom has previously attached municipal assets in order to obtain payments. It has also entered into partnership agreements with some municipalities to strengthen their technical and other billing and revenue collection capabilities.