Limpopo municipalities owe Eskom R1.6 billion
Ramokgopa blames electricity theft and infrastructure tampering for ongoing transformer failures and load reduction in parts of Limpopo.
Municipalities in Limpopo owe Eskom about R1.6 billion.
The debt dates back to last December, Electricity and Energy Minister Kgosientsho Ramokgopa, pictured, told mayors, municipal managers, chief financial officers, councillors, directors and premier Dr Phophi Ramathuba during a South African Local Government Association (Salga) indaba at the weekend.
The debt to Eskom by municipalities nationwide amounts to a staggering R78 billion.
Limpopo owes Eskom R1.6bn
South Africa has a total of 257 councils, 27 of them in Limpopo.
Those owing the most in Limpopo are in the Waterburg district – Modimolle/Mookgophong, Thabazimbi and Bela Bela.
ALSO READ: Here's Gauteng's Eskom load reduction schedule for the rest of June
The three councils, Ramokgopa said, have been approved for a debt relief programmes by the National Treasury.
'Although approved, only Bela Bela has met the debt relief condition. The council has signed an active partnering service level agreement,' he said.
'A similar agreement for Thabazimbi was signed by the previous council, but was not implemented. Other municipalities such as Musina, Makhado and Mogalakwena have made a commitment to adhere to payment.'
Ramokgopa blames electricity theft and infrastructure tampering
However, Ramakgopa seemed concerned about the extent of load reduction in urban and rural areas.
'Illegal connections, meter bypassing and tampering with electricity infrastructure have increased over the years,' he said.
ALSO READ: Adequate emergency reserves in place for occasional system constraints – Eskom
'These activities continue to cause repeated failures and explosions of Eskom equipment due to overloading, threatening the overall security of the electricity supply.'
In an endeavour to protect Eskom's assets from failure and explosions, the utility has identified areas with significantly high electricity theft, primarily from residential customers.
These areas, Ramokgopa said, are subjected to load reduction in an effort to contain demand.
R4.3 million spent to replace transformers
In the past 21 months, he said, Eskom has spent R4.3 million to replace transformers.
Salga provincial chair John Mpe appealed to municipalities to pay their debts with Eskom.
ALSO READ: Third-party concessions a solution for municipal electricity distribution
He also urged communities to work with the police and Eskom to report illegal connections.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
IOL News
7 hours ago
- IOL News
Exxaro Resources faces challenges from rail disruptions and coal demand decline
Exxaro has forecast further declines in the international coal price for the second half of its financial year to December 31, 2025, due to global trade tensions, higher Indian coal production, higher gas and nuclear power output in Japan, Korea, and Taiwan, and sluggish Chinese offtake. Image: Supplied Exxaro Resources' immediate challenges includes South Africa's rail infrastructure, a decrease in coal demand from Eskom as well as the uncertainty created by the impending expiry of a 90-day import tariff reprieve granted by the US. Trade regulatory uncertainty has moderated since April, positively impacting financial and commodity markets. Equity indices, crude oil prices, and the US dollar rebounded, said Riaan Koppeschaar, CFO of the coal, iron ore mining, and renewable energy group, in a pre-close statement released on Monday. However. the 90-day reprieve on increased US import tariffs on South African goods is set to expire on July 9, 2025. During this period, South African exports to the US are subject to a 10% tariff instead of the previously announced 30%. Koppeschaar noted that while South Africa's real GDP began the year slowly, with a 0.1% quarter-on-quarter expansion, there is optimism that economic activity will improve in 2025, despite the uncertain trade outlook. Transnet Freight Rail (TFR) continues to experience disruptions, including cable theft, power failures, locomotive and wagon shortages, and deteriorating infrastructure. A rail wash-away in the first half of the year affected Grootegeluk, while a derailment further impacted throughput. 'Despite these challenges, the Richards Bay Coal Terminal volumes improved to 54.45 million tons per annum (Mtpa) for 2024, up from 52 Mtpa. Rail execution remains volatile but has shown improvement, particularly in the Mpumalanga region,' the group stated. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Eskom sales by Exxaro are expected to decrease by 15%, in line with Eskom's maintenance schedules. Koppeschaar indicated that for the six months ending June 30, the average benchmark API4 Richards Bay Coal Terminal (RBCT) export price is expected to average $91 per ton, compared to $110 per ton for the second half of 2024. Iron ore fines prices are projected to average $100 per dry metric ton, slightly down from $101 per dry metric ton in the second half of the previous year. Exxaro's total coal product and sales volumes are forecast to decline by 6%ay. and 7% in the first half, respectively, primarily due to reduced demand from Eskom. Coal capital expenditure is expected to be 19% lower, in line with capital replacement plans at Grootegeluk and Belfast. Cennergi's wind assets are forecast to generate 335 GWh of electricity by June 30, 2025, down from 339 GWh at the end of the first half in 2024, and 386 GWh in the six months to the end of 2024. Construction of the 68 MW Lephalale Solar PV Project at Grootegeluk is underway. As of May 31, the group held R19.5bn in cash, excluding R5.8bn in debt in the energy business. On May 13, Exxaro announced the acquisition of manganese assets from Ntsimbintle Holdings and OMH (Mauritius) Corporation, for between R9bn and R14.64bn. The transaction is expected to close in early 2026. Thermal coal production is anticipated to decline by 4%, in line with Eskom's reduced demand at Grootegeluk. Metallurgical coal production is forecast to fall 24% due to above-normal rainfall and associated logistical disruptions. Tied mine production at Matla is expected to increase 18% mainly due to the early ramp-up of Mine 1. Seaborne thermal coal prices are under pressure due to weak demand, exacerbated by lower natural gas prices, ongoing Russia-Ukraine peace negotiations, and broader concerns over new tariffs. By the end of the first half, the spot API4 price traded at around $90 per ton. In the iron ore market, prices are being weighed down by tariffs on China's steel exports to the US, discussions on China's 2025 steel production limits, and broader US-China trade tensions. On the weaker coal markets, the group noted that Indian domestic steel producers are facing competition from cheaper imported steel, dampening demand for South African coal. Meanwhile, Indian coal production has increased, largely supporting the power generation sector. Higher gas and nuclear power output in Japan, Korea, and Taiwan further reduced coal demand. This decline caused Australian prices to fall to a four-year low of $90 per ton, further aggravated by sluggish Chinese offtake. The API4 index fell below US$90 per ton in the first half of 2025—a level not seen since the early days of the Russia-Ukraine war. Domestic thermal coal sales are expected to increase by 23%, driven by the redirection of export volumes to the local market and higher demand for other thermal coal products, mainly at Belfast and Leeuwpan. Metallurgical coal sales are forecast to decline by 26% due to rail disruptions in the first half, caused by severe rainfall. Export volumes are expected to decrease by 10% due to rail disruptions caused by severe rainfall and a derailment in the first half. Visit:
IOL News
7 hours ago
- IOL News
BLSA CEO warns: US tariffs and GNU challenges threaten South Africa's economy
Business Leadership South Africa CEO Busisiwe Mavuso has warned that South African exports to the United States could soon face tariffs of up to 30% Image: Armand Hough/Independent Media Business Leadership South Africa CEO Busisiwe Mavuso has warned that South African exports to the United States could soon face tariffs of up to 30% if a key trade deal is not renewed. IOL previously reported that last month, US President Donald Trump announced a 10% tariff on all imports to the US, along with additional "reciprocal tariffs" for several countries, including a 30% tariff on South African goods. However, he later paused these higher tariffs for 90 days for most countries, except China. Earlier this year, Minister of Agriculture John Steenhuisen also conceded that the future of South Africa's trade benefits under the African Growth and Opportunity Act (AGOA) remains uncertain, saying the government was 'hoping for the best but preparing for the worst.' Despite President Cyril Ramaphosa's diplomatic efforts, including a high-level meeting with US President Donald Trump, aimed at easing tensions and strengthening trade ties between the two nations. "When we approached the subject of AGOA, it was made very clear that it is a creature of Congress and that we would have to engage with Congress, my personal view is that AGOA may still be on the boil but it is going to be different from the AGOA we know from the past," Steenhuisen said. In her weekly newsletter on Monday, Mavuso warned that the expiry of the current trade arrangement could seriously disrupt the country's export momentum. "Earlier this year, confidence was building—you could feel it in boardrooms and investment committee meetings. Then the global trade environment shifted dramatically," Mavuso said. "The looming expiration of the current 10% tariff arrangement on July 9 could see South African exports to the US facing 30% tariffs, fundamentally altering trade flows and forcing rapid strategic adjustments". Mavuso also pointed to challenges within the Government of National Unity (GNU), noting delays in Eskom's restructuring and the lack of focused attention on key logistics corridors. "Eskom's restructuring has hit unexpected delays in key areas, and our logistics corridors still aren't receiving the focused attention they desperately need" While government and business have committed to short-term reform 'sprints,' Mavuso said success will depend on effective execution. 'The proof will be in execution.' On political dynamics, she described the GNU's political uncertainty as its 'Achilles heel,' warning that tensions among coalition partners risk undermining investor confidence and delaying reforms. 'When political survival takes precedence over governance, everyone loses.' she added. IOL Business Get your news on the go, click here to join the IOL News WhatsApp channel
The Citizen
15 hours ago
- The Citizen
WATCH: City Power to pay Eskom R3.2b settlement
Provided an update during a briefing on June 24 at the Hugh Masekela Boardroom in the Johannesburg Theatre. City Power and Eskom reached the R3.2b settlement after both parties avoided a protracted court case regarding electricity billing and debt dispute resolution. The settlement amount will be paid over four years. The Minister of Electricity and Energy, Dr Kgosientsho Ramokgopa, and the executive mayor of the City of Johannesburg, Dada Morero, provided an update during a briefing on June 24 at the Hugh Masekela Boardroom in the Johannesburg Theatre. This agreement follows a notice issued by Eskom in November 2024, threatening to cut the power supply to Johannesburg. In November, the minister and the mayor led a high-level engagement to mediate among all parties, which initiated a collectively agreed-upon technical intervention by the South African National Energy Development Institute (SANEDI) to investigate and assess discrepancies in the dispute. Ramokgopa was pleased that the dispute, dating back as far as 10 years, was finally resolved. He said they needed a technically competent and neutral party to help them resolve the conflict. 'SANEDI could discharge and carry out that responsibility with the utmost distinction. 'We are going to make the SANEDI report public and have committed, together with the mayor, to satisfying our constitutional responsibilities of ensuring that we surface all the facts and share all the information so that those who want to familiarise themselves with the technical aspects of what we found can do so,' he said. He said that when they began the process in November, they anticipated it would take three weeks. However, several months later, the report has only now been released. 'SANEDI's investigation was somewhat narrow, focusing solely on the issues before us – namely billing and metering. That exercise was completed, but during the process, the parties felt the need to mine more raw data to ensure proper reconciliation. You can imagine the volume of data, which is why we needed the extension,' he said. The minister noted that they had learned the value of intergovernmental relations. He emphasised that the courts should be a last resort and should not be burdened with matters that can be resolved between the parties. He added that another key lesson came from the scale of the exercise at City Power in Johannesburg, noting that no other municipality or city in the country is larger than Johannesburg. 'If you can resolve the challenges with City Power, you should be able to resolve challenges across the country.' He noted that while the challenges may not be identical, their complexity and magnitude are significant, and there is now almost a template for how to address similar disputes in the future. 'We also learned that leadership is key. Mature heads and cool minds entered this conversation with the sole intention of resolving the dispute. 'We confirmed the issues related to the impact of load-shedding. When metering was absent, we relied on estimates that were not accurate. One lesson learned for the future is to ensure that bulk metering is in place—and that during load-shedding, it must register zero, as there is no bulk supply of electricity,' he said. Morero thanked the minister for his effort and the work that was done. 'We are happy with the settlement, as outlined. Now it is a matter of implementing the agreement reached. Thank you to the teams who worked so hard to arrive at this settlement,' he said. Other stakeholders present included City Power CEO Tshifularo Mashava, acting city manager Tshepo Makola, Eskom group executive Monde Bala, SANEDI CEO Dr Titus Mathe, and chairperson of the board Sicelo Xulu. At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
