Embattled Eskom writes off chuck of Soweto's multi-billion rand debt

Embattled Eskom writes off chuck of Soweto's multi-billion rand debt

- Despite knowing full well that it stands to lose R21 billion this financial year, Eskom has written off a portion of Soweto's debt

- R3.6 Billion rand worth of debt that has been written off but still the suburb owes a massive amount to the utility

- The current commitment to paying for electricity in the Jozi suburb is reportedly less than that for e-tolls

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Eskom is battling to contain a massive debt burden but has still opted to write off R3.6 billion worth of Soweto's debt.

Despite the massive concession, the suburb still collectively owed the power utility R16.1 billion, reports The Citizen.

This had taken place after the interest incurred on the outstanding accounts rose higher than the amount owed.

Briefly.co.za reported that the state-owned entity intends to tackle illegal connections in the region, which is set to impact approximately 60% of the population that calls the settlement home.

READ ALSO: Eskom clamps down: 14-hour power cuts may be reality for Free State

Citizens in the region have a lower payment rate for electricity (16%) than what the controversial e-toll system has ( 20%).

Eskom revealed that there was a concerning trending of fewer citizens honoring their utility bills, with the percentage dropping from 93% to 78% in the space of four years.

The utility is expected to lose around R21 billion for the most recent financial period, with 64% of the funding needed for next year yet to be secured. The amount needed for the utility to function is R46 billion over and above what has already been procured.

The entity's new CEO, Nampak boss Andre de Ruyter, is set to kick off his time at the helm of the troubled power behemoth at the start of next year.

Hopefully, the businessman will be able to prove his critics wrong and turn the tide for the better.

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Source: Briefly.co.za

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