The municipality had filed an urgent application to stop Eskom from cutting off power to the municipality. The municipality owes Eskom about R200 million.
The court has ruled that Eskom cannot disconnect electricity in the Newcastle Municipality.
Eskom wanted the municipality to pay at least R60 million monthly.
However, the municipality took the matter to court to stop Eskom from cutting off power. The municipality asked to pay at least R30 million each month. The court ruled in favour of the municipality.
The amount of R30 million is to be paid to Eskom no later than the 15th of each month until payment is settled.