SA’s electricity crisis | Impact of debt write-off on residents

JOHANNESBURG - Treasury wants Eskom to write off around R70-billion of municipal debt.

That's before it takes over part of the utility's R400-billion debt.

READ: Analyst | Govt takeover of Eskom debt will help power utility

There have long been calls to cancel Soweto's R5-billion debt.

But the relief comes with strict conditions, including cutting off non-paying users.

Trevor Ngwane from the Soweto Electricity Crisis Committee says this will hurt and not help residents.

READ: Cosatu calls on Finance Minister to help relieve Eskom debt burden

“If you look at the proposal to scrap the debt, it’s a carrot and stick approach.

"So if you do certain things as a municipality, you will be rewarded.

"But if you do certain things or don’t do certain things, you will be punished," Ngwane said.