Eskom has announced the publication of a disconnection notice for the bulk supply of electricity to the Tokologo local municipality in the Free State due to an unpaid debt of R300 million.
The state-owned power utility said the action is in accordance with the provisions of the Promotion of Administrative Justice Act (PAJA). “If Eskom continues with the shutdown, bulk power supply to Boshof, Seretse, Dealesville and Hertzogville will be interrupted daily for a specified number of hours per day from January 31, 2025,” Eskom’s statement said. Eskom said the municipality currently owes them R328,711,887 for the bulk supply of electricity, excluding the current bill of a further R3,682,099, which became due on November 20, 2024. According to the utility, the last payment Eskom received from the municipality was R150,000 on October 5, 2021.
“The municipality charges, collects and receives money from its customers for the supply of electricity, but fails to remit the portion due to Eskom.
“This is at the expense of Eskom and is not sustainable. The municipality is responsible for fulfilling a constitutional obligation, but decides to withhold payments to Eskom. Eskom’s decision to continue with the process of disconnecting electricity supplies is a last resort to prevent debt from spiraling out of control.” The municipality’s failure to meet its payment obligations to Eskom undermines and jeopardizes the utility’s ability to continue providing national 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 interested parties to submit written representations, submissions or representations as to why Eskom should or should not proceed with downsizing, shutting down or terminating the bulk power supply points.
The closing date for submissions closes on January 6, 2025 and Eskom will announce the final decision on or before January 16, 2025. “Eskom appreciates the hardship that the community and the economy will suffer if it were to exercise its legal powers to disconnect the municipality. There are no other meaningful options available to Eskom to stop debt growth and recover debt for current consumption through bulk supply.” Eskom outlined stakeholder interventions to enable the municipality to pay off its Eskom debt since 2021. “Despite all the options Eskom has explored and attempts to accommodate the municipality, the matter has reached a point where Eskom simply can no longer afford to accommodate the municipality without further financial pressure and damage to its own business. “In terms of the Constitution and the Intergovernmental Relations Framework, the municipality is expected to cooperate and assist Eskom in fulfilling its mandate to ensure that citizens have access to affordable electricity. “The municipality has breached these obligations by failing to pay Eskom for the bulk power it supplies, making it impossible for Eskom to fulfill its mandate.” Originally posted on SAnews.gov.za
Chelsea Gillespie
infrastructurenews.co.za