Eskom Holdings will be allowed to take over the distribution of electricity in South African municipalities that collectively owed the state utility R85.2-billion at the end of last year. The government has offered support to local authorities that have fallen into arrears due to weak revenue generation, poor credit controls and other financial pressures. But only 15 of 71 councils that signed up for a turnaround program have consistently met the conditions to qualify for relief from the state, including demonstrating improved debt collection.
Amid growing dissatisfaction with the performance of many of the country’s 257 municipalities, 162 of which are categorised as being in financial distress, the National Treasury has outlined what it describes as a fundamental shift in the subnational fiscal architecture that moves from oversight to active structural intervention. “At the municipal level, this shift involves changes to legislation, governance arrangements and technological intervention,” the Budget Review states, indicating that the proposed municipal reforms are rooted in the revised White Paper on Local Government.
Power utility Eskom is encouraging communities, environmental groups, industry representatives, government institutions and other interested and affected parties to review, and comment on, a draft cost-benefit analysis (CBA) report and related documents on flue gas desulphurisation (FGD) at the Medupi Power Station, in Limpopo. Eskom had previously applied to then Forestry, Fisheries and the Environment Minister Dr Deon George for an exemption from compliance with certain minimum emission standards (MES) limits for a period in 2025. In response, the Minister on March 31, 2025, issued a directive, requiring Eskom to complete and publish for stakeholder comment a revised and expanded plant-specific CBA for FGD at Medupi.
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