Question NW1681 to the Minister of Public Enterprises
21 August 2020 - NW1681
Brink, Mr C to ask the Minister of Public Enterprises
What: (a) are the details of the current age analysis of the total debt owed by each municipality to Eskom and (b) amount of the debt is made up of (i) principal debt, (ii) interest and (iii) penalties ineach case?
Reply:
According to the information received from Eskom
a) The total debt owed by municipalities as at June 2020 is R43.9 billion, of which R30.9 billion is overdue debt. The details of the age analysis of the total debt owed by each municipality to Eskom, as at June 2020 are set out in Annexure A.
b) (i) and (ii) The total debt of R43.9 billion, is made up of the capital amounts of R32.4 billion, interest of R6.7 billion and VAT of R4.8 billion. The makeup of total debt in terms of capital and interest for each municipality, as at June 2020 is set out in Annexure A.
c) (iii) The total Notified Maximum Demand (NMD) exceedance charge for June 2020 is R46.9 million and R104 million for the financial year to date. This is a penalty for NMD exceedance raised in terms of the NMD Rules approved by the National Energy Regulator of South Africa (NERSA) to discourage future exceedances and is included in the capital amount. The NMD exceedance charge, for each municipality as at June 2020 is set out in Annexure B.