South Africa: ConCourt to Hear of ‘Human Disaster’ After Eskom Cuts Off Municipalities Owing Billions

Eskom has lower the electrical energy provide of two native municipalities that collectively owe R2.8bn, inflicting devastation for municipalities on the forefront of employment and financial exercise.

Was Eskom justified in disconnecting energy to native municipalities that owe it billions of rands in unpaid electrical energy payments and, within the course of, inflicting hurt to households and companies that aren’t at fault and are being thrown into darkness?

And might Eskom unilaterally scale back energy provide to municipalities in arrears or refuse them extra electrical energy regardless of each events being certain by long-standing electrical energy provide agreements?

These are questions that have been earlier than the Constitutional Court docket on 23 Could as Eskom sought to overturn an earlier court docket’s ruling that compelled it to totally restore electrical energy to 2 municipalities that collectively owe it R2.8-billion. The closely indebted municipalities are the Ngwathe Municipality within the Free State (owing Eskom R1.3-billion) and the Lekwa Municipality in Mpumalanga (owing R1.5-billion).

The Ngwathe and Lekwa native municipalities are deeply dysfunctional, Eskom has argued, as they have not paid for the electrical energy they’ve acquired, though their clients/residents pay electrical energy payments on time. So, residents pay electrical energy charges on time through pay-as-you-go meters or month-to-month post-paid preparations, however the municipalities are…

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