Eskom Should Write Off Debt to the Tune of R16 Billion in Soweto, Committee Demands
- New demands have been made by the Soweto Electricity Crisis Committee that Eskom writes off all historical debt amounting to R16 billion
- This is despite the ailing power utility announcing that it would be writing off a debt of R5.3 billion
- The Soweto Electricity Crisis Committee is also demanding a flat-rate payment system, having previously demanded to pay a monthly electricity bill of R100
- Eskom said Soweto is among the top 20 non-paying municipalities that owe a staggering 23 per cent of the arrears
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New demands that Eskom writes off a bill amounting to R16 billion for electricity that residents owe have been made by the Soweto Electricity Crisis Committee.
The demands come just days after the news emerged that the ailing power utility would be writing off a debt of R5.3 billion electricity owed by the residents of Soweto in the southwest of Johannesburg.
Source: Getty Images
According to SABC News, Eskom revealed during their annual result presentation that they are owed a total amount exceeding R35 billion and are reporting a financial loss of close to R19 billion.
Despite the offer to slash more than R5 billion from the Soweto electricity bill, the committee voiced that it wasn't enough.
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“We still not excited about that, and we stand firm on our position that Eskom should scrap all the debt," said committee spokesperson Lerato Mokgapi.
"Before this pandemic, residents took to the streets to protest against the unfair practices of Eskom and high tariffs. The majority of the poor that are using the electricity are unemployed.”
Of the debt owed by the country’s biggest township, only R536 million was deemed collectable, an IOL report claims. This means Soweto only has a payment level of only 20.6 per cent.
Demands for flat-rate payment system
Briefly News understands that electricity consumers comprised tens of thousands of residential customers in the sprawling township, which Eskom said presents a difficulty in collecting individual outstanding amounts.
As a result, the committee said it wants a flat-rate payment system while all historical debt should be done away with.
"Soweto is against Eskom’s pre-paid system and its high tariffs. We are talking about a basic need here ... currently, we don’t even have electricity," Mokgapi lamented, who stressed that residents won't be put to the sword.
"In Diepkloof, we are already sitting with a ridiculous electricity schedule, and now they still expect us to pay. And as residents of Soweto, we will not pay."
Not enough paying municipalities
Eskom said Soweto is among the top 20 non-paying municipalities that owe a staggering 23 per cent of the arrears.
In all, just 10 municipalities honour their payment arrangements with Eskom – from the 43 non-paying municipalities.
But the utility confirmed that negotiations have commenced in which Soweto's debt balance, regulatory processes, social and human resources and financial implications are being considered.
The Soweto committee is also demanding a flat-rate payment system, having previously demanded a monthly electricity bill of R100.
Eskom has won a R1.3 billion judgement against the Emfuleni Municipality
In related news, Briefly News recently reported that Eskom reportedly won a judgement against a local municipality, Emfuleni.
According to reports, the judgement was for R1.3 billion. This was due as the municipality had not paid for bulk electricity services.
The power utility stated that the debt was part of a total of R1.9 billion which the Emfuleni Municipality had accumulated in 2019.
Eskom revealed that the Emfuleni Municipality is at the top of their list of municipalities in Gauteng that have poor payment records and arrears of more than R3 billion.
Source: Briefly News
