Eskom has attached Gauteng’s Emfuleni Municipality bank accounts in a bid to recover R8 billion in arrears. File image
Eskom has attached Gauteng’s Emfuleni Municipality bank accounts in a bid to recover R8 billion in arrears.
As of the end of August, Emfuleni owes R8,052,093,269.36 for bulk electricity. This amount represents 10% of the total R82 billion owed by municipalities and places Emfuleni among the top three municipalities in debt to Eskom.
The decision follows the municipality's failure to comply with a debt relief program set in place. Eskom explained that the municipality was issued with a notice in July after breaching the Municipal Finance Management Act's Debt Relief Program.
“Consequently, the Sheriff of the Court has successfully attached Emfuleni’s four bank accounts to ensure that the money collected for electricity is paid directly to Eskom,” the utility giant said in a statement.
It said the municipality failed to comply with the requirements of the National Treasury debt relief program. The attachment of the bank accounts allows Eskom to receive payment for the electricity it supplies, ensuring continued service to the municipality’s customers.
Eskom added that it had exhausted all legal and mediation avenues to secure payment for services rendered since 2018.
“Eskom cannot financially sustain the electricity debt of the municipality without severely impacting its own operations and the citizens of the country,” the utility added.
“The municipality’s failure to pay for bulk electricity compromises Eskom’s financial stability and its ability to provide affordable electricity.”
Eskom explained that collecting municipal debt is a key focus and it will use various strategies to recover funds.
“Municipal debt remains one of Eskom’s biggest challenges. As of the end of March 2024, municipal arrears stood at around R74.4 bn, with an increase of approximately R15.9 bn during the last financial year.”
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