110 South African Municipalities Each Owe Eskom More Than R1 Million

South Africa’s municipal electricity debt crisis continues to worsen, with 110 municipalities owing Eskom more than R1 million each in overdue payments.

The total outstanding municipal debt owed to the power utility reached a staggering R122.5 billion as at 31 August 2026, raising further concerns about the financial health of local government and Eskom’s long term sustainability.

The figures were revealed by Electricity and Energy Minister Kgosientsho Ramokgopa in a written parliamentary response to Democratic Alliance (DA) MP Kevin Mileham.

Mileham had asked how many municipalities were failing to pay their Eskom accounts in full and on time, as well as the total amount of outstanding debt.

Ramokgopa confirmed that 110 municipalities had overdue debts exceeding R1 million each.

This represents approximately 43% of South Africa’s 257 municipalities.

The latest figures show that municipal debt has increased significantly over the years, despite several government interventions aimed at addressing the problem.

At the end of Eskom’s 2026 financial year in March, municipal arrears stood at R111.6 billion.

By 31 August, this had increased by another R10.9 billion to R122.5 billion.

The scale of the problem becomes even clearer when looking at the historical figures.

In 2014, municipalities owed Eskom approximately R2.6 billion. By 2019, the amount had increased to R19.9 billion.

In 2022, municipal arrears reached R44.8 billion, before climbing to more than R111 billion in 2026.

Eskom has warned that, if the trend continues municipal debt could reach R300 billion by the 2030 financial year.

Although 110 municipalities have overdue accounts exceeding R1 million, the majority of the debt is concentrated among a relatively small group of municipalities.

Eskom has previously indicated that its 20 biggest municipal debtors account for between 78% and 82% of total municipal arrears.

The problem is no longer limited to smaller rural municipalities, with some of the country’s largest metropolitan governments also struggling to settle their electricity bills.

One of the biggest problems is that municipalities are failing to collect enough money from residents and businesses to cover their expenses.

Electricity theft, illegal connections, meter tampering and outdated infrastructure have contributed to significant revenue losses.

In many municipalities, residents pay their electricity bills to the local authority, which is then responsible for paying Eskom for bulk electricity supply.

However when municipalities fail to collect the money or use it for other expenses, they struggle to settle their accounts with the power utility.

Some municipalities have also used money intended for electricity payments to cover other financial obligations.

The National Treasury introduced the Municipal Debt Relief Programme in 2023 to help struggling municipalities settle their Eskom debt.

The programme allows qualifying municipalities to receive debt relief, provided they meet strict conditions, including paying their current electricity accounts in full and on time.

However compliance has been disappointing.

Of the 71 municipalities participating in the programme, only a small number have consistently met the requirements.

National Treasury has also proposed further interventions, including arrangements that would allow Eskom to take over electricity distribution in certain struggling municipalities.

The aim is to improve revenue collection and ensure that electricity payments reach the utility.

South Africa’s municipal debt crisis remains a major concern for Eskom, particularly as the utility attempts to strengthen its finances and maintain a reliable electricity supply.

Without meaningful improvements in municipal financial management and revenue collection, the growing debt burden could become an even bigger problem for taxpayers, electricity consumers and the country’s energy sector.

Sources: 110 municipalities across South Africa owe Eskom R1 million each – Daily Investor

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