{"id":45116,"date":"2023-03-01T12:26:52","date_gmt":"2023-03-01T12:26:52","guid":{"rendered":"https:\/\/www.africa-press.net\/south-africa\/all-news\/why-western-cape-municipalities-eskom-debt-is-likely-to-increase"},"modified":"2023-03-01T12:32:54","modified_gmt":"2023-03-01T12:32:54","slug":"why-western-cape-municipalities-eskom-debt-is-likely-to-increase","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/south-africa\/all-news\/why-western-cape-municipalities-eskom-debt-is-likely-to-increase","title":{"rendered":"Why Western Cape municipalities’ Eskom debt is likely to increase"},"content":{"rendered":"

Africa-Press – South-Africa. <\/strong><\/span>The Western Cape’s treasury department warned that municipalities, which have outstanding Eskom debt, could see it balloon in the new financial year.<\/p>\n

The department briefed the standing committee on local government on Tuesday about late payments to Eskom.<\/p>\n

According to the department, it takes numerous steps to ensure municipalities don’t drown in Eskom debt.<\/p>\n

As of January this year, the Beaufort West, Cederberg, Kannaland and Matzikama municipalities owed Eskom R275 million combined.<\/p>\n

This was a 7.27% increase compared to August last year, when the debt amounted to R255 million.<\/p>\n

The department’s Steve Kenyon told the committee they specifically monitored the payment of creditors, and the payments made by the municipality.<\/p>\n

He said:<\/p>\n

Kenyon said the National Energy Regulator of SA’s (Nersa) decision to grant Eskom an 18.65% tariff increase from the start of April would filter through to municipalities on 1 July \u2013 and they were limited on the cost they could pass onto residents.<\/p>\n

“Whatever profit municipalities make on their electricity will also subsidise other services because the municipality does not have many areas of revenue, so their revenues are limited to rates, water and sanitation, and electricity,” he said.<\/p>\n

Kenyon added that more and more customers were becoming indigent.<\/p>\n

Indigent households earn a combined income of less than R3 200 per month.<\/p>\n

“What we are seeing is that the basket of revenue coming from electricity is reducing, and we will see an increase in the debt owed to Eskom,” he said.<\/p>\n

The chairperson of the standing committee, Isaac Sileku, said Western Cape municipalities were responsible for only 0.5% of outstanding municipal debt older than 30 days to Eskom.<\/p>\n

“Eskom is already falling apart, and municipal debt is a compounding factor that eventually harms residents, as Eskom demands huge tariff increases to cover the shortfall,” he said.<\/p>\n

For More News And Analysis About South-Africa<\/a> Follow Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – South-Africa. The Western Cape’s treasury department warned that municipalities, which have outstanding Eskom debt, could see it balloon in the new financial year. The department briefed the standing committee on local government on Tuesday about late payments to Eskom. According to the department, it takes numerous steps to ensure municipalities don’t drown in […]<\/p>\n","protected":false},"author":84,"featured_media":45115,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,12],"tags":[274,315,279,818,251,129,127,500,275,295],"class_list":["post-45116","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-policy","tag-africa-press","tag-africa-press-south-africa","tag-cape-town","tag-city-of-cape-town","tag-economy","tag-electricity","tag-eskom","tag-service-delivery","tag-south-africa-2","tag-western-cape"],"yoast_head":"\nWhy Western Cape municipalities' Eskom debt is likely to increase - South Africa<\/title>\n<meta name=\"description\" content=\"The Western Cape's treasury department warned that municipalities, which have outstanding Eskom debt, could see it ballo ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/south-africa\/all-news\/why-western-cape-municipalities-eskom-debt-is-likely-to-increase\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Why Western Cape municipalities' Eskom debt is likely to increase\" \/>\n<meta property=\"og:description\" content=\"The Western Cape's treasury department warned that municipalities, which have outstanding Eskom debt, could see it ballo ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/south-africa\/all-news\/why-western-cape-municipalities-eskom-debt-is-likely-to-increase\" \/>\n<meta property=\"og:site_name\" content=\"South Africa\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2023-03-01T12:26:52+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-03-01T12:32:54+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/south-africa\/sites\/31\/2023\/03\/postQueueImg_1677661026.01.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1024\" \/>\n\t<meta property=\"og:image:height\" content=\"683\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/why-western-cape-municipalities-eskom-debt-is-likely-to-increase#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/why-western-cape-municipalities-eskom-debt-is-likely-to-increase\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"Why Western Cape municipalities’ Eskom debt is likely to increase\",\"datePublished\":\"2023-03-01T12:26:52+00:00\",\"dateModified\":\"2023-03-01T12:32:54+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/why-western-cape-municipalities-eskom-debt-is-likely-to-increase\"},\"wordCount\":317,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/why-western-cape-municipalities-eskom-debt-is-likely-to-increase#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/south-africa\/sites\/31\/2023\/03\/postQueueImg_1677661026.01.jpg\",\"keywords\":[\"Africa Press\",\"Africa Press-South-Africa\",\"cape town\",\"city of cape town\",\"Economy\",\"electricity\",\"Eskom\",\"service delivery\",\"South-Africa\",\"western cape\"],\"articleSection\":[\"all news\",\"policy\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/south-africa\/all-news\/why-western-cape-municipalities-eskom-debt-is-likely-to-increase#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/why-western-cape-municipalities-eskom-debt-is-likely-to-increase\",\"url\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/why-western-cape-municipalities-eskom-debt-is-likely-to-increase\",\"name\":\"Why Western Cape municipalities' Eskom debt is likely to increase - 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