Eskom responds to court ruling on Emfuleni Municipality's bank account seizure. Picture: file image.
Despite the court ruling that Eskom was wrong for attaching Emfuleni municipality’s bank accounts to secure payments for the municipality’s electricity debt, the power utility said this would affect their ability to deliver affordable and reliable electricity.
On Monday, the North Gauteng High Court in Pretoria ruled that the power utility should have not attached the embattled municipality’s account because it (Emfuleni) was part of the National Treasury Debt Relief Programme.
The court said that Eskom was not entitled to enforce historical debt processes.
This comes after the municipality failed to pay its electricity bill which Eskom claimed to be around R8 billion.
Emfuleni is one of the most struggling and corrupt municipalities in Gauteng. It has been struggling to collect revenue from customers who never pay for electricity.
This also impacted their ability to deliver services to the public.
Eskom said that in its attempts to obtain payment for services provided since 2018, it has used every legal and mediation option.
The municipality then applied to set aside or suspend Eskom’s actions.
In response to the court ruling, Eskom acknowledged the ruling but said at the time the case was heard, it had already released the attachment on all of Emfuleni's bank accounts.
Furthermore, both Eskom and Emfuleni had entered into a Distribution Agency Agreement (DAA), as per the instructions of the Pretoria High Court order dated July 5, 2023.
This rendered the "Part A" order — about the attachment — moot.
Eskom said Emfuleni’s application sought to contest Eskom's action because the municipality was a participant in the relief programme.
The case is divided into two parts, with the recent ruling addressing "Part A," which focuses on interim relief.
Although the court refrained from making any definitive findings on the constitutionality, lawfulness, or validity of Eskom's attachment, these issues were set to be examined in "Part B" of the case.
The court clarified that it was not its responsibility to determine Emfuleni's continued participation in the Debt Relief Programme at the current stage, as this would be addressed in the second phase of the case.
In a statement, Eskom said recovering outstanding debt from defaulting municipalities to strengthen the power supply was one of its main commitments.
“Debt collection efforts are essential for maintaining stable electricity supply and minimising reliance on government and interventions such as load shedding,” it said.
According to Eskom, municipalities across the country owed to it approximately R90 billion.
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