The Merafong City Local Municipality in Gauteng’s West Rand owes Eskom just over R700 million.
The municipality has committed to come up with a plan to manage its current account.
The municipality has been battling to meet its obligations for a while and met with Eskom this week to hash out a new payment agreement.
Eskom said that the municipality’s overdue debt, along with what was owed by other provincial municipalities, had a knock-on effect on the power utility’s financial performance and sustainability.
Eskom Gauteng spokesperson Amanda Qithi said, “Eskom billed the municipality R28 million for January for which only R18 million was received. We anticipate a good working relationship with the municipality and to assist where possible to guard against recurrent delays in payment. The municipality has pledged to put together a proposal which we will review.”