South Africa: Eskom issues service disconnection notice to Free State municipality

“Eskom must exercise its right to disconnect electricity supply to the municipality in order to protect the national interest in sustainable electricity supply to support economic growth.”

The entity has since invited all relevant parties to submit written representations, comments or observations as to why Eskom should or should not proceed with the reduction, disconnection or closure of wholesale electricity supply points .

The submission deadline will be close of business on January 6, 2025 and Eskom will communicate the final decision no later than January 16, 2025.

“Eskom understands the hardship that the community and economy will suffer if it exercises its statutory powers to disconnect the municipality. There is no other meaningful option for Eskom to prevent the growth of debt and to collect for current consumption a supply bulk.”

Eskom has outlined stakeholder interventions to enable the municipality to pay its Eskom debt since 2021.

“Despite all avenues explored by Eskom and efforts made to accommodate the municipality, the matter has reached a point where Eskom simply can no longer afford to accommodate the municipality without exerting additional financial pressure and harming its own business .

“In terms of the Constitution and the intergovernmental relations framework, the municipality is expected to cooperate and assist Eskom in fulfilling its mandate of ensuring that citizens have access to affordable electricity.

“The municipality has breached these obligations by failing to pay Eskom for the electricity it supplies in bulk, thereby preventing Eskom from fulfilling its mandate.”