Eskom has cut the electricity supply of two local municipalities that collectively owe R2.8bn, causing devastation for municipalities at the forefront of employment and economic activity.
Was Eskom justified in disconnecting power to local municipalities that owe it billions of rands in unpaid electricity bills and, in the process, causing harm to households and businesses that are not at fault and are being thrown into darkness?
The Ngwathe and Lekwa local municipalities are deeply dysfunctional, Eskom has argued, as they haven’t paid for the electricity they have received, even though their customers/residents pay electricity bills on time. So, residents pay electricity fees on time via pay-as-you-go meters or monthly post-paid arrangements, but the municipalities are not handing over these payments to Eskom.
“The 62 schools are unable to maintain standards of hygiene. The fire brigade cannot function. Shops are closing down and real-estate development is adversely affected…” But since he was appointed as Eskom CEO two years ago, André de Ruyter has intensified collection efforts, going to the extent of dragging municipalities to court to have their bank accounts and assets attached to recover outstanding payments. De Ruyter has also taken a less adversarial approach, opting to stay out of court by entering into payment agreements with municipalities. In 2021, Eskom engaged with 45 municipalities to engineer a payment agreement.
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