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 state-owned power utility said the action is per the provisions of the Promotion of Administrative Justice Act (PAJA).
“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. This is excluding the current account of a further R3, 682 099, which became due and payable on November 20 2024.
According to the utility, the last payment Eskom received from the municipality was R150, 000 on October 5 2021.
Municipality receives money from customers, but fails to pay it to Eskom
“The municipality charges, collects, and receives money from its customers for the supply of electricity. But it fails to hand over the portion due to Eskom,” Eskom said.
“This is at Eskom’s detriment, and it is not sustainable. The municipality is responsible for discharging a constitutional obligation. But it decides to withhold payments to Eskom. The decision by Eskom to proceed with disconnecting electricity supply is a last resort. This to prevent the debt from spiralling out of control.”
The municipality’s breach of its payment obligation to Eskom is detrimental. It undermines and places in jeopardy the utility’s ability to continue the national supply of electricity. And to do so on a financially sustainable basis.
“Eskom must exercise its right to disconnect the supply of electricity to the municipality. This 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. Also comments or submissions indicating why Eskom should or should not proceed with the plan. Which is to reduce, disconnect, or terminate the bulk electricity supply points.
Given deadline of January 6
The closing date for submissions will be close of business on January 6 2025. And Eskom will communicate the final decision on or before January 16 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.
Eskom has exhausted all measures
“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.
“The municipality is supposed to cooperate and assist Eskom with fulfilling its mandate. That of ensuring that citizens have access to affordable electricity. This in terms of the Constitution and the Intergovernmental Relations Framework.
“The municipality has breached these obligations by not paying Eskom for the bulk electricity it supplies. Thus making it impossible for Eskom to fulfil its mandate.”
- SAnews.gov.za
