Eskom accused of double-charging municipalities
The South African Local Government Association (SALGA) has accused Eskom of double-charging municipalities on their debt.
Municipal debt to the power utility stands at around R50 billion, a figure the cash-strapped entity says makes it difficult to keep the lights on consistently.
Local Government Association president Bheke Stofile says the interest on the debt is double for local government.
"Eskom has been charging municipalities R223 million on what they call notified month-to-month demand, which compounds into that R52 billion that they are talking about."
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He says they believe the utility is in violation of the Public Management Finance Act.
"Because municipalities are governed by the Municipal Finance Management Act, Eskom is governed by Public Management Finance Act. What the PMFA is allowed to be charged an interest which is one interest per month, Eskom has been allowed to charged twice of what is regulated as an interest"
But Eskom says municipalities pay rates approved by the National Energy Regulator of South Africa.
