South Africa’s state-owned electricity provider, Eskom, announced in early March 2026 that it would cut off the power to 14 municipalities that collectively owe it more than R110 billion (US$6.5 billion). Energy economist Roula Inglesi-Lotz describes the growing crisis in South Africa’s power system, where many municipalities can’t pay their bulk electricity bills due to poor governance, weak finances, and low payment rates from consumers. She sets out why cutting the supply won’t help Eskom get paid but could harm low income communities.
Why did Eskom decide to cut off 14 municipalities?
Eskom went through many tough years burdened by high debt levels, rising operating costs, declining electricity sales and corruption scandals.
