The amount owed to municipalities for services has continued to rise, reaching R94-billion by June, compared with the R93.3-billion recorded in December.

Households still accounted for the bulk of the aggregate municipal consumer debts; however, this had declined from 63.2% or R59-billion of the total debt in December, to 61.6% or R57.9-billion as at June.

Government debt owed to municipalities had increased to 4.8% or R4.5-billion of the total outstanding debtors, a rise on the 4.4%, or R4-billion, owed as at December.

According to National Treasury’s ‘Local government revenue and expenditure’ report for the 12 months to June, the continued economic slowdown and “substantial increases” associated with municipal cost drivers such as fuel and bulk purchases, including water and electricity, continued to impact affordability and the ability of consumers to pay for services.

Metropolitan municipalities were owed R52.9-billion in outstanding debt as at June 30 – a year-on-year increase of R4.2-billion or 8.7% compared with the corresponding period the year before.

The report showed that the City of Johannesburg was still owed the largest amount at R17.4-billion, followed by Ekurhuleni at R10.7-billion, the City of Tshwane at R6.6-billion and Cape Town at R6.5-billion.

“Secondary cities are owed R17.1-billion, which is an increase of 4.9% on the R16.3-billion reported in the corresponding period for the 2012/13 financial year,” National Treasury said, noting that households accounted for R12.1-billion or 70.8% of the outstanding debt.

Nearly 84% of the total debt had been outstanding for more than 90 days.