Eskom has warned that mounting municipal debt threatens its financial sustainability, as unpaid municipal accounts continue rising despite the utility’s return to profitability and improved balance sheet.
Power utility Eskom has warned that municipal debt could surge to as much as R358 billion by 2031 without decisive intervention.
The utility has seemingly turned a corner in recent years, bringing an end to persistent load shedding while returning to profitability and strengthening its balance sheet.
It announced on Monday that it had recorded a second consecutive profitable year, with group profit after tax rising to R30.3 billion for the year ended March 2026, from R14 billion in the previous year.
However, despite the improved financial position, Eskom continues to face significant challenges in collecting money owed to it by municipalities and other customers.
