The National Treasury has confirmed that the collective debt owed to Eskom by the 28 municipalities approved for participation under the Eskom Municipal Debt Relief Support Programme represents R26.69-billion of the R58.5-billion owed to the utility as of the end of March.

Eskom has confirmed that the arrears debt has since climbed to above R65-billion.

In response to questions posed by Engineering News, the National Treasury also confirmed that collective debt owed by non-applicants stood at R31.81-billion.

However, it reiterated that the deadline for applications had been extended until October 31, from an initial deadline of the end of September to allow for further voluntary applications.

It also expected to finalise assessments of a further nine applications by October 16, having indicated in a previous statement that 25 possible additional applications were currently serving before respective provincial treasuries.

The programme, which was announced during the February Budget, is designed to enable Eskom to write off municipal debt, with 136 of the country’s 257 municipalities having been in arrears to Eskom at the end of March.

The National Treasury also provided Engineering News with a list of the names of the successful applicants, including five municipalities that owe more than R1-billion: the Emalahleni municipality (R7.4-billion), the Emfuluni local municipality (R5.9-billion), the Govan Mbeki local municipality (R3.7-billion), the City of Matlosana local municipality (R1.4-billion) and the City of Mbombela local municipality (R1.1-billion).

The other municipalities named as having applied successfully for the programmes are Enoch Mgijima (R991-million), the Rand West City (839-million), Modimolle-Mookgophong (R832-million), Victor Khanye (R637-million), Nketoana (R620-million), Walter Sisulu (R537-million), Mkhondo (R431-million), Mangaung metropolitan municipality (R387-million), Msukaligwa (R333-million), Siyancuma (R228-million), Mogale City (R216-million), Nama Khoi (R210-million), Ulundi (R143-million), Emakhazeni (R142-million), Matzikama (R113-million), Renosterberg (R108-million), Beaufort West (R77-million), Endumeni (R76-million), Dawid Kruiper (R65-million), Richtersveld (R53-million), Cederberg (R45-million), Kannaland (R45-million) and Mthonjaneni (R7-million).

The writedowns will be implemented over three financial years should the participating municipalities meet the scheme’s 14 conditions, including minimum collections stipulations, a ringfencing of the Eskom account which should be paid first and a restriction on borrowings.

There is also the potential for a revocation of a municipality’s electricity distribution licence should it fail to comply with the conditions.