- Eskom has announced the publication of a disconnection notice for bulk electricity supply to Tokologo Local Municipality in the Free State due to an unpaid debt of R300 million.
- The South African state-owned power utility said the action is per the provisions of the Promotion of Administrative Justice Act (PAJA).
- Eskom has outstanding municipal debt has spiralled to R90 billion which threatens to cripple the uitlity. Read more
“Should Eskom proceed with the disconnection, bulk electricity supply to Boshof, Seretse, Dealesville, and Hertzogville will be interrupted daily from 31 January 2025 for a set number of hours per day,” the Eskom statement read.
Eskom said the municipality currently owes them R328 711 887 for the bulk supply of electricity, excluding the current account of a further R3 682 099, which became due and payable on 20 November 2024.
According to the utility, the last payment Eskom received from the municipality was R150 000 on 5 October 2021.
“The municipality charges, collects, and receives money from its customers for the supply of electricity but fails to hand over the portion due to Eskom.
“This is at Eskom’s detriment and it is not sustainable. The municipality is responsible for discharging a constitutional obligation but decides to withhold payments to Eskom. The decision by Eskom to proceed with the process to disconnect electricity supply is a measure of last resort to prevent the debt from spiralling out of control.”
The municipality’s breach of its payment obligation to Eskom undermines and places in jeopardy the utility’s ability to continue the national supply of electricity on a financially sustainable basis.
“Eskom must exercise its right to disconnect the supply of electricity to the municipality to protect the national interest in the sustainable supply of electricity to support economic growth.”
The entity has since invited all affected parties to submit written representations, comments, or submissions indicating why Eskom should or should not proceed to reduce, disconnect, or terminate the bulk electricity supply points.
The closing date for submissions will be close of business on 6 January 2025 and Eskom will communicate the final decision on or before 16 January 2025.
“Eskom appreciates the hardships the community and the economy will suffer should it exercise its statutory powers to disconnect the municipality. There are no other meaningful options available for Eskom to stop the debt from growing and to collect for current consumption on bulk supply.”
Eskom outlined interventions by stakeholders to empower the municipality to pay its Eskom debt since 2021.
“Despite all the avenues that Eskom explored and efforts to accommodate the municipality, the matter has reached a point where Eskom can simply no longer afford to accommodate the municipality without further financial strain and harming its own business.
“In terms of the Constitution and the Intergovernmental Relations Framework, the municipality is supposed to cooperate and assist Eskom with fulfilling its mandate of ensuring that citizens have access to affordable electricity.
“The municipality has breached these obligations by not paying Eskom for the bulk electricity it supplies, making it impossible for Eskom to fulfill its mandate.”
