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Eskom threatens to disconnect Free State municipality over more than R330m in unpaid debt

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Eskom threatens to disconnect Free State municipality over more than R330m in unpaid debt

People walking near transmission lines
Photo by Reuters

28th November 2024

By: Creamer Media Reporter

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Power utility Eskom has published a notice of the possible disconnection of bulk electricity supply to Tokologo local municipality, in the Free State, which will result in bulk electricity supply to Boshof, Seretse, Dealesville and Hertzogville being interrupted for a set number of hours each day from January 31.

The utility says the municipality currently owes it R328.7-million, excluding the current account of a further R3.68-million that became due and payable on November 20, and that the last payment it received from the municipality was R150 000 in October 2021.

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"The municipality charges, collects and receives money from its customers for the supply of electricity but fails to hand over the portion due to Eskom. This is at Eskom’s detriment and it is not sustainable. The municipality is responsible for discharging a constitutional obligation but decides to withhold payments to Eskom.

"The decision by Eskom to proceed with the process to disconnect electricity supply is a measure of last resort to prevent the debt from spiralling out of control. The municipality’s breach of its payment obligation to Eskom undermines and places in jeopardy Eskom’s ability to continue the national supply of 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 utility states.

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It has invited affected parties to submit written representations, comments and/or submissions indicating why it should or should not proceed to reduce, disconnect and/or terminate the bulk electricity supply points by January 6. After considering the submissions, the utility plans to make a final decision on or before January 16.

Submissions are to be addressed to the Senior adviser key sales and customers services and emailed to FSTokologo@eskom.co.za or delivered to 120 Henry street, Westdene, Bloemfontein.

Eskom says it would appreciate progressive representations, including direct payment by customers or direct supply from Eskom, considering the magnitude and possible long-term effects of this problem.

Eskom earlier this month also threatened to cut bulk electricity supply to the City of Johannesburg (CoJ) from December 14, saying it owed the utility R4.9-billion in arrears.

The CoJ, meanwhile, argued that Eskom had been overbilling it to the tune of more than R3.4-billion.

After intervention by Energy and Electricity Minister Kgotsientsho Ramokgopa, Eskom and the CoJ agreed to an independent technical assessment of the billing dispute as a means to finding a long-term resolution.

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