Emalahleni owes Eskom R300m, loses R200m to illegal connections

2014-08-18 21:31

The Emalahleni municipality’s R300 million debt to Eskom is the result of historically low electricity tariffs and loss through illegal connections and vandalism.

Co-operative Governance Minister Pravin Gordhan today said the Mpumalanga municipality had for years had a shortfall on projected electricity revenue because its tariffs were not cost reflective.

“While in the previous years the municipality succeeded in paying Eskom accounts from accrued surpluses, during the later stages of 2012 and the beginning of 2012, a cash shortfall in the municipality resulted in under payments of the account,” said Gordhan in response to a parliamentary question posed by the DA.

Moreover, he said, Emalahleni was experiencing electricity losses of more than R200 million due to illegal connections, high maintenance cost to its ageing power infrastructure and “constant vandalism of electricity power lines, copper theft, etc”.

These costs could not be recovered from tariff revenue, Gordhan added.

Eskom is owed about R2.82 billion by 51 municipalities across South Africa as of 31 May 2014.

Emalahleni, which has been under administration for more than a year, is the worst offender, followed by Thaba Chweu, also in Mpumalanga.

Gordhan said Emalahleni has signed acknowledgement of debt and payment plans with Eskom and established a law enforcement unit to combat vandalism and remove illegal power connections.

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Inside News24


Men.24 Model of the Week: Wendy from Cape Town

Find out more about our featured model, Wendy from Cape Town


You won't want to miss...

Who are the highest paid models of 2017?
10 gorgeous plus-sized models who aren't Ashley Graham
WATCH: Pornhub is giving users free access to premium content these holidays
5 top leg exercises for men
Traffic Alerts
There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.


Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.