South Africa municipal debt to Eskom tops R120bn; calls for financial distress intervention

Municipal arrears to South African power utility Eskom have surpassed R120 billion, prompting calls to classify indebted municipalities as financially distressed to enable direct intervention and agency management agreements. The proposal signals a potential shift in government policy toward enforcing payment discipline, which could affect Eskom's cash flow and the stability of electricity supply. Uncertainty remains over implementation and political resistance.