National Treasury will allow them to have some of the amounts owing written off over three years
Municipalities will soon get respite from repaying billions of rand owed to Eskom after a decision by National Treasury to have some of the debt written off over three years.
Eskom interim CFO Martin Buys recently told parliament debt owed by municipalities stood at more than R58bn and unless there was an intervention it could increase to R66bn-R68bn by end-March 2024. If a municipality’s application is approved, for each of the three years of the debt relief, a third of the total owed will be written off only after a municipality has complied with the conditions for 12 consecutive months. It will thus take 36 months for a full debt write-off.
Another condition is for municipalities that benefit from the debt relief to maintain a minimum average quarterly collection from customers for property rates and services. They will have to achieve an 80% collection from April 1, 85% in 2024 and 95% in the year from April 1 2025.
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