Eskom says it will ramp up efforts to collect unpaid debt from municipalities by terminating electricity supply.
Spokesperson Sikonathi Mantshantsha says, “Eskom is now in a position to enhance all its collection efforts from defaulting municipalities who collectively owe the utility more than R31 billion in overdue debt.”
The High Court in Johannesburg recently dismissed an application by Pioneer Foods seeking to set aside Eskom’s 2018 decision to interrupt electricity supply to the Walter Sisulu Municipality in the Eastern Cape.
The municipality has failed to pay for electricity.
The court found that Pioneer Foods, a customer of the municipality, had no standing electricity supply agreement with the power utility. It also found that the entity’s interruption of supply to the defaulting municipality was necessary for its survival.
Mantshantsha says, “This is a landmark judgment which affirms Eskom’s rights and validity of its actions in terminating supply to non-paying customers. We will ramp up Eskom’s efforts to collect unpaid municipal debt.”
State Capture once again hears evidence on matters relating to Eskom
Meanwhile, the Commission of Inquiry into State Capture recently heard evidence on matters relating to Eskom.
Former independent consultant at Eskom Nicholas Linnell concluded his testimony where he detailed the extent of his involvement in establishing an inquiry into Eskom and the subsequent suspension of four executives.
His testimony was followed by evidence from Former group capital executive Dan Marokane and former chief financial officer Tsholofelo Molefe, both their testimonies detailed political interference and unfair suspensions at Eskom.