South Africa’s state-owned power utility Eskom has begun warning municipalities that it will cut electricity if delinquent accounts are not settled.
Several municipalities, including Freestate, owe the utility money. "The decision to terminate the electricity supply was not taken lightly," it said in a statement. "The decision was taken as a last resort and can only be avoided by the municipalities paying the overdue amounts owed to Eskom."
Eskom is attempting to secure payments by July 20.
The power utility has been struggling with financing and is looking to shore up its capital. The World Bank granted Eskom a loan of $3.75 billion in April, but bulk water infrastructure maintenance will need capital to overcome a possible collapse, according to the South African Revenue Protection Association.
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