The bankrupt Tokologo Local Municipality is facing the possibility of blackouts in the new year, owing to its failure to pay accounts that are millions in arrears to Eskom.
The electricity supplier notified the municipality on Thursday, 28 November, of the possible disconnection of its bulk electricity supply, in accordance with the Promotion of Administrative Justice Act (Paja).
Stefanie Jansen van Rensburg, spokesperson for Eskom in the central region, said the disconnection in bulk electricity supply to Boshof, Seretse, Dealesville and Hertzogville would be interrupted daily from 31 January 2025, for certain hours.
Van Rensburg said the last payment Eskom received from the municipality was an amount of R150 000, and that this had been made on 5 October 2021.
Despite the non-payment, and the municipality breaching its payment obligation to Eskom, the power supplier however continued to provide bulk supply.
According to the supplier, the ANC-governed municipality’s outstanding account stands at R328 711 887,46, while the current account is at R3 682 099,21.
Despite its financial predicament, the municipality reportedly did not opt for any remedial process, such as the participation in the Intergovernmental Regulations Framework Act (Irfa) and the National Treasury’s Debt Relief Programme, which is available to all municipalities owing Eskom millions in outstanding accounts.
The latter option stipulates that Eskom is to write off the municipal debt over three years subject to, among other conditions, the municipality paying its current account henceforth.
Van Rensburg said on 15 September 2022 Tokologo, through its attorneys, confirmed that it did not wish to participate in the Irfa process, but would rather pursue the dispute from the litigation point of view.
Eskom continues to lament the negative impact experienced due to municipalities’ failure to pay their accounts for bulk electricity supply.
“The municipality charges, collects and receives money from its customers for the supply of electricity, but fails to hand over the portion due to Eskom.
“This is to Eskom’s detriment, and it is not sustainable.
“The municipality is responsible for discharging a constitutional obligation, but decides to withhold payments to Eskom.
“The decision by Eskom to proceed with the process to disconnect electricity supply is a measure of last resort to prevent the debt from spiralling out of control.”
The municipality’s breach of its payment obligation to Eskom undermines and places in jeopardy Eskom’s ability to continue the national supply of electricity on a financially sustainable basis.
