South Africa’s power utility company, Eskom, has published a disconnection notice for Tokologo municipality in the Free State over R328 million in unpaid electricity bill.
Should Eskom proceed with the disconnection, bulk electricity supply to Boshof, Seretse, Dealesville, and Hertzogville will be interrupted daily from 31 January 2025 for a set number of hours per day.
The municipality currently owes Eskom R328 million for the bulk supply of electricity. This excludes the current account of a further R3.68 million, which became due and payable on 20 November 2024. The last payment Eskom received from the municipality was R150 000 on 5 October 2021.
The municipality could not be immediately be reached for comment.
President Cyril Ramaphosa also recently signed a proclamation authorising the Special Investigating Unit to investigate allegations of serious maladministration in the municipality and to recover any resultant financial losses suffered by the state.
“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,” the utility said in a statement.
“This is at Eskom’s detriment, and it is not sustainable.”
The utility said its decision 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 notice is in accordance with the provision of the Promotion of Administrative Justice Act (PAJA).
Eskom said the municipality’s breach of its payment obligation undermines and places in jeopardy the utility’s ability to continue the national supply of electricity on a financially sustainable basis.
Municipal debt across the country has reached R90 billion and remains a major challenge for the utility.
The utility has invited all affected parties to make submissions indicating why it should not proceed to reduce, disconnect or terminate the bulk electricity supply points to Tokologo.
The closing date for submissions is 6 January 2025, and Eskom will communicate the final decision on or before 16 January.
“Eskom appreciates the hardships the community and the economy will suffer should it exercise its statutory powers to disconnect the municipality,” it said.
“There are no other meaningful options available for Eskom to stop the debt from growing and to collect for current consumption on bulk supply.”
The utility listed a raft of interventions since October 2021, noting that the municipality pulled out of a dispute resolution process and also failed to apply for a debt relief programme extended to local government by the National Treasury.
Despite all the avenues that Eskom explored and efforts to accommodate the municipality, the matter has reached a point where Eskom can simply no longer afford to accommodate the municipality without further financial strain and harming its own business.
Source: News24.com