The South African Local Government Association (Salga) has formally requested a six-month grace period from National Treasury for 14 municipalities currently in default.
The association argues that these local authorities need additional time to finalize agency agreements that would appoint Eskom as their agent to manage electricity distribution and billing.
The request highlights the friction between the central government's push for rapid utility reform and the operational realities faced by struggling local municipalities.
Without these agreements, the state-owned power utility cannot fully assume control over the distribution networks in these areas, a key component of the broader restructuring strategy.
This development comes shortly after President Cyril Ramaphosa endorsed the first report from the Eskom Restructuring Task Team.
The executive support signaled a clear path toward a structural overhaul of the utility, including the creation of an independent transmission system operator.