Addressing Eskom’s Debt and Ensuring Affordable Electricity for All
Eskom, South Africa’s national electricity utility, is facing a significant challenge with municipalities owing them around R78bn. In turn, these municipalities are owed about R349bn by various customers, including individual households, businesses, and even the government. This has led to a pressing need to find innovative solutions to address the mounting debt and ensure affordable electricity for all.
One key focus is on protecting poor households who genuinely cannot afford to pay their electricity bills due to economic constraints. Steps are being taken to ensure that the more than 8 million households entitled to free basic electricity receive it, alleviating some of the financial burden.
The Ministry of Energy is exploring innovative solutions, including private sector-led initiatives tested in certain municipalities. The goal is to create a pricing policy that not only makes electricity affordable for low-income households but also provides relief for middle-income households experiencing financial pressure.
By finding a balance between affordability and cost-effectiveness, the aim is to secure a sustainable future for South Africa’s electricity supply while protecting the interests of all consumers.
Source: TimesLIVE