Moneyweb
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3 minute read
27 Jan 2021
7:05 am

Eskom ‘can’t cut municipal power’

Moneyweb

Service delivery will completely collapse if Eskom cuts electricity supply to municipalities – SCA.

Koeberg is the only commercial nuclear power station in Africa. Picture: Gallo Images / Nardus Engelbrecht)

Two recent court rulings have made it much more difficult for Eskom to leave paying municipal customers in the dark when cutting or restricting electricity supply to delinquent municipalities. While this will hinder Eskom’s efforts to collect more than R30 billion in outstanding municipal arrears, it also calls to action other state institutions obliged to assist in resolving disputes between Eskom and local governments. These include provincial departments, National Treasury and energy regulator, Nersa. The first judgment, delivered by the Supreme Court of Appeal (SCA) in December 2020, dealt with applications by property group Resilient and business and tourism chambers...