This week is likely to prove crucial for any proposed deal after the Emfuleni Local Municipality (ELM) and Eskom again met on 10 January 2024 for the first time in the new year to discuss the matter, but without finalising a deal or making an announcement.

But tensions have arisen between the entities involved centred on ELM’s general revenue collection performance and collection rates which are reportedly over-estimated by Eskom, sources close to the process told Vaalweekblad.

ELM is also negotiating Rand Water on a new Special Purpose Vehicle organisation for a partnership dealing with all aspects of water and sanitation in Emfuleni with the present Metsi-a-Lekoa municipal organisation dissolved and incorporated.

Eskom has confirmed the 10 January meeting and also the “end-January” deadline for the process, which could see thousands of Emfuleni electricity consumers migrate their power accounts direct to the bulk utility provider.

A draft agreement is known to be on the table between the three entities involved – ELM, Eskom and the National Energy Regulator of SA (Nersa), which plays an oversight role.

Should the parties fail to conclude an electricity deal as ordered by the Johannesburg High Court last year, they are compelled to report back to court.

The High Court found that Emfuleni consumers – all consumers, not only businesses – can pay Eskom direct and ordered that Eskom, ELM and Nersa hammer out an agency deal to implement the mechanics.

In terms of such a deal, Eskom would run ELM’s electricity infrastructure and revenue collection but would pay the municipality its appropriate share.

Electricity provides the bulk of ELM’s revenue by far but such funds have not been utilised to improve service delivery on electricity.

The High Court  action was originally brought by the Golden Triangle Chamber of Commerce (GTCoC) several years ago in the interests of all consumers, the GTCoC said.

A number of Emfuleni businesses – Large Power Users (LPU’s) – have already started paying Eskom direct but both ELM and the GTCoC have already urged all account holders to start migrating their accounts direct to Eskom.

Late last year, however, Eskom said in a statement that no mass migration of accounts was yet taking place apart from those directly mentioned in the High Court judgment, believed to be over 200 businesses.

“The GTCoC brought the court action to pay Eskom direct instead of ELM in the interests of all consumers and not only business,” said GTCoC President Jaco Verwey.