Municipal debt owed to Eskom keeps mounting. It’s not as if the municipalities have no budget — they just prefer to spend the money on something else, knowing Eskom won’t cut them off. Of course, that doesn’t stop them from selling the “free” power to their residents.
The solution is to place municipalities on a pre-paid basis, like individuals. If they don’t pay, they get nothing. Angry residents will soon rise up and ensure their mayor and councillors pay the Eskom tariff, which in any event is less than the resale price to residents.
There would be no incentive for a municipality not to pay, as in most cases they resell to their residents and businesses at a profit. Absent this model, municipal debt to Eskom will keep climbing.
Willem Cronje
Cape Town
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