Thokozile Mnguni
Parliament’s committees on Cooperative Governance and Traditional Affairs and Electricity and Energy have called for an urgent inter-ministerial intervention in distressed municipalities, focusing on rising debt owed to Eskom.
The committees want a coordinated government-wide response, saying fragmented action is no longer effective.
Briefings were received from the Department of Electricity and Energy, Eskom, National Treasury and other stakeholders. Discussions centred on Distribution Agency Agreements between municipalities and Eskom.
Zama Khanyase, Chairperson of the Portfolio Committee on Electricity and Energy, warned that municipal debt is undermining Eskom’s recovery. She said the debt runs into billions of rand.
She said the agreements aim to improve revenue collection, strengthen municipal capacity and support sustainable electricity supply.
The Chairperson of the Portfolio Committee on Cooperative Governance and Traditional Affairs, Zweli Mkhize, said the crisis requires joint action across government. He said the inter-ministerial committee must address governance failures, corruption and structural weaknesses in municipalities.
He said some municipalities are not financially viable and cannot resolve their challenges alone.
Mkhize added that Eskom and municipalities must move away from opposing positions, with Eskom demanding payment and municipalities citing inability to pay, warning that this is not sustainable.
The committees said Distribution Agency Agreements are not a silver bullet and must comply with the Constitution, with municipal powers over electricity reticulation respected.
However, members warned that constitutional authority cannot be used to justify poor performance or financial mismanagement.
Parliament noted municipalities owe Eskom more than R110 billion, up from R89 billion previously reported.
Members also raised concerns that municipalities are owed large amounts by consumers, reflecting weak billing systems and poor revenue collection.
Municipalities were urged to pay for current electricity usage, strengthen credit control and update indigent registers.
Khanyase said policy reforms are underway, including a review of electricity pricing policy and local government frameworks, but interim measures are still required.
The committees have given stakeholders three months to return with concrete interventions, including an intergovernmental plan addressing debt, governance failures, revenue collection and infrastructure challenges.