Salga warns against Eskom power cuts to indebted municipalities

A new dispute between local government and the national power utility has reignited fears about electricity supply in South Africa.

The South African Local Government Association (Salga) has sharply criticised Eskom after the utility issued disconnection notices to 14 municipalities that owe billions of rand in unpaid electricity bills.

While Eskom says the move follows legal procedures and comes after years of unpaid debts, Salga argues that cutting electricity would punish residents who have already paid their municipal bills.

The standoff highlights a deeper financial crisis affecting municipalities across the country.

Why Eskom is threatening to cut supply

According to Eskom, the disconnection warnings were issued through the Promotion of Administrative Justice Act, commonly known as PAJA.

This process allows municipalities to present arguments explaining why their electricity supply should not be disconnected.

The utility says the decision was not taken lightly.

Officials claim the affected municipalities have failed to settle their Eskom accounts for at least 18 months and have not complied with the requirements set by the National Treasury for debt relief.

Eskom also said it had already tried other avenues through the Intergovernmental Relations Framework Act, which encourages cooperation between government institutions.

After those efforts failed, the utility says it had little choice but to escalate the matter.

Salga says electricity is a critical service

For Salga, however, the threat of disconnections crosses a dangerous line.

The organisation argues that electricity supply should be treated as an essential service that communities depend on for daily life.

According to Salga’s portfolio head for energy and electricity distribution, Nhlanhla Ngidi, cutting power to municipalities could have serious humanitarian and economic consequences.

He warned that paying residents and businesses could suffer the most if electricity supply is disrupted.

Hospitals, schools, local shops and water systems all rely on a stable electricity supply meaning a municipal blackout could ripple through entire communities.

The deeper problem behind municipal debt

The growing dispute is part of a much larger issue: South Africa’s mounting municipal debt crisis.

Municipalities across the country collectively owe Eskom more than R110 billion, according to estimates shared during the discussions.

Ngidi said the problem is not caused by one single factor.

Instead, it reflects a combination of structural issues.

One of the biggest challenges is non-payment by households, businesses and even government departments in some towns and cities.

When residents fail to pay their municipal bills, local governments struggle to collect the revenue needed to pay Eskom.

Electricity revenue is also often used to subsidise other municipal services such as waste removal and road maintenance.

When electricity income falls short, the ripple effect can quickly lead to unpaid Eskom bills.

Eskom says the system must be protected

From Eskom’s perspective, the issue is about maintaining financial discipline across the electricity sector.

Agnes Mlambo, Eskom’s interim group executive for distribution, said the PAJA process ensures the utility follows the law while trying to recover the debt.

She argued that tackling unpaid municipal bills is necessary to protect the power system and maintain the progress made under Eskom’s turnaround strategy.

The utility says improving its financial stability helps ensure reliable electricity supply for businesses, industries and communities.

Ongoing negotiations behind the scenes

Despite the strong public statements, discussions are continuing behind closed doors.

Salga confirmed that talks are taking place between Eskom, municipalities, National Treasury, and the Department of Cooperative Governance and Traditional Affairs.

One proposal being considered involves municipalities entering distribution agency agreements, where Eskom would play a larger role in managing electricity distribution.

Supporters say this could improve billing and revenue collection in struggling towns.

Social media reaction reflects public anxiety

The dispute has also triggered concern among South Africans online.

Many residents worry they could lose electricity even if they have paid their municipal accounts.

Others say the situation highlights long-standing governance challenges in struggling municipalities.

Some commentators argue that the crisis is a symptom of deeper problems in local government finances and service delivery.

A fragile balance between debt and service delivery

The Eskom–municipality dispute shows how difficult it has become to balance financial accountability with essential public services.

On one hand, Eskom must recover billions in unpaid bills to keep the power system stable.

On the other, cutting electricity could disrupt entire communities and local economies.

For now, the PAJA consultation process means the power will stay on while discussions continue.

But unless a long-term solution is found, the standoff between Eskom and municipalities may only be the beginning of a much larger challenge facing South Africa’s electricity system.