Eskom has warned that debt owed is likely to balloon to R36 billion by the end of next year, if municipalities fail to pay.
South Africa is heading towards a debt bubble with many consumers spending most of their disposable income to service debt.
Eskom still has to recover R23, 5 billion from municipalities which owe the power utility. This has been revealed by Public Enterprises Minister Pravin Gordhan in a written reply to a Democratic Alliance Parliamentary question in the NCOP.
Power utility Eskom said it is concerned over the financial implications of Tuesday’s KwaZulu-Natal High Court decision which ordered Eskom not to cut off electricity supply to the town of Newcastle
A report by the National Credit Regulator tabled in Parliament shows that 40% of credit active South Africans have bad debt.