The Madibeng Local Municipality in Brits, North West, is on the verge of a major blackout due to outstanding electricity and water bills totaling R129 million owed to the City of Tshwane as of October 31, 2023. The debt has led Tshwane officials to issue a notice of disconnection, threatening essential services for the municipality.
Energy expert Sampson Mamphweli attributes the crisis to mismanagement of revenue by municipalities. “In some cases, municipalities collect revenue from selling electricity and redirect it to other services, especially in areas facing pressure from creditors. This results in non-payment to Eskom for bulk electricity purchases,” Mamphweli explained.
The City of Tshwane has been engaged in attempts to resolve the outstanding debt, but progress has stalled. Madibeng Municipality proposed a payment plan extending the repayment period to 45 days and a full settlement by March 31, 2025. However, Tshwane rejected the proposal, citing its own precarious financial situation.
Lindela Mashigo, spokesperson for the City of Tshwane, said, “The arrangement was not considered favourable to the city’s financial state. A detailed response was sent to the Madibeng municipal manager requesting a revised proposal and clearly stating that failure to pay will result in disconnection. To date, no payments have been received.”
Should the disconnection proceed, Madibeng residents may face a dire situation with disrupted electricity and water services. The looming crisis highlights broader challenges of financial mismanagement and strained municipal budgets, which are exacerbating service delivery issues across the country.
The City of Tshwane’s firm stance reflects the growing pressure on municipalities to address unpaid debts amid mounting financial constraints. It remains to be seen whether Madibeng can avert the impending blackout by meeting Tshwane’s demands.
