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Eskom set to go after municipalities that collectively owe R31bn

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On Wednesday, Eskom made it known that it would work on collecting money from municipalities which collectively owe it more than R31bn.

The power utility in a statement said:

“The court has set the important legal principle that Eskom is only obliged to supply electricity to paying customers.”

“The Electricity Regulation Act of 2006 entitles Eskom to interrupt electricity supply to a non-paying customer”

The court explained that interruption of supply  of electricity to the defaulting municipality are considered important and necessary for Eskom’s survival.

The power utility is not expected to supply electricity customers who refuse to pay for it.

“The relationship between Eskom and the municipality is reciprocal in that Eskom supplies bulk electricity against payment.”

“Having received the judgment, Eskom is now in a position to enhance its collection efforts from defaulting municipalities, who collectively owe Eskom in excess of R31bn in overdue debt,” added the utility.

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