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Eskom Holdings SOC Ltd v City of Johannesburg Metropolitan Municipality and Others (2024/048808) [2024] ZAGPJHC 579

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Eskom Holdings SOC Ltd v City of Johannesburg Metropolitan Municipality and Others (2024/048808) [2024] ZAGPJHC 579

Legal gavel

21st June 2024

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Click here to read the judgment on Saflii

[1]  The applicant (Eskom) brings this urgent application to hold the first respondent (the COJ) to its obligations to pay Eskom’s electricity accounts as and when they fall due. When the application was launched the COJ owed Eskom an amount of R1 073 593 894,34 for an unpaid electricity account due for payment on 28 and 29 April 2024. The amount relates to bulk electricity that Eskom supplied to the COJ. The bulk electricity supply is in terms of Electricity Supply Agreements binding between Eskom and the COJ.

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[2] By the time that the application was heard, there was a further amount of over R1 billion for the month of May 2024 that remained unpaid by the COJ. The COJ has decided to withhold these payments from Eskom because it alleges that Eskom owes it an amount in excess of R3,4 billion in respect of previous over-billing. The COJ contends that the April and May 2024 payments to Eskom are set off against the amount of over R3,4 billion owed to it by Eskom for previous overbilling. The exact amount allegedly owed by Eskom from the alleged overbilling is R3 416 383 079,00.

[3]  In response to Eskom’s application, the COJ and the second respondent (City Power) brought a counter application to be heard as an urgent application at the same time as Eskom’s application. That counter application is based on the contention that Eskom is indebted to the COJ and City Power in the amount of over R3,4 billion for overbilling. They contend that this amount of R3,4 billion is due and payable by Eskom and is set-off against the April and May 2024 accounts from Eskom. On this approach of the COJ and City Power, they will withhold all payments to Eskom for electricity supply up to the amount of over R3,4 billion in respect of previous overbilling.

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