Electricity Minister Kgosientsho Ramokgopa says electricity distribution infrastructure is not in good shape, largely due to under-investments as well as illegal connections that cause power failures.
Ramokgopa said the financial status of municipalities is of huge concern."'The financial health of municipalities is very illiquid. Some are insolvent and not raising sufficient revenue to meet their operational activities," he said,
He added that at the current rate, municipal debt is expected to increase exponentially, and this ultimately places a burden on Eskom. This includes ensuring they stay on track with the payment of their current accounts, said Monde Bala, head of Eskom distribution. Bala said that the National Energy Crisis Committee is working on options to fund the refurbishment of distribution infrastructure. There are some"indicative figures" of how much will be required to bolster Eskom's infrastructure, but determinations are still being made for how much municipalities will need.
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