SEDIBENG.- National electricity supplier, Eskom has said that the Emfuleni Local Municipality (ELM) debt continues to accumulate.
The company said that during July 2018, it took a decision to interrupt the electricity supply to the ELM due to non-payment of their electricity account, which at that stage was in arrears by close to R900 million.

The decision is said to have come after the ELM had already consented to a judgment in March 2018, admitting liability towards Eskom in the amount of R614 million. Eskom said that despite the aforesaid judgment and an agreement to pay it the current monthly account, the municipality simply failed to honor their undertaking and obligation in terms of their license conditions and continued with their non-payment of the current electricity account.

As a result of the continual non-payment, the Eskom debt continued to accrue, which prompted Eskom to bring a further court application. In this application, Eskom has said that it is seeking an order for a further 200 companies to pay Eskom directly and that the ELM Municipal Manager (MM) and CFO be held in contempt for their failure to comply with the various court orders in place. Eskom has also said that it supports a further application which was brought by the large consumers in the municipality for the municipal electricity distribution license to be revoked and transferred to Eskom because of the municipality’s failure to comply with its own license conditions and its total failure to maintain the electricity infrastructure within the municipality. If successful, this will result in a takeover of the electricity network within the municipality by Eskom. Over and above, Eskom also instituted action against the municipality for the recovery of nearly R1,4 billion and was granted judgment in its favor during the end of 2021.

Currently, the municipal debt in Emfuleni has grown from R614 million in March 2018 when they first agreed to an order being made against them, to R4,4 billion as of February 2022, where R332 million is debt aged between 30-90 days.

“Eskom is attempting all legal and other avenues at its disposal to collect the monies owed to it and will continue to do so until the full outstanding debt has been recovered from Emfuleni Local Municipality”, said Daphne Mokwena, Senior Manager Customer Services in Gauteng.