Eskom
By Mpho Moloi
Eskom has issued a disconnection notice for the Tokologo Local Municipality in the Free State, citing an unpaid electricity debt exceeding R300 million. The state-owned power utility confirmed that this drastic action aligns with the Promotion of Administrative Justice Act (PAJA), emphasising the urgency to resolve the municipality’s escalating financial obligations.
“Should Eskom proceed with the disconnection, bulk electricity supply to Boshof, Seretse, Dealesville, and Hertzogville will be interrupted daily from 31 January 2025 for a set number of hours per day,” the utility stated.
Mounting Debt and Non-Payment Crisis
The Tokologo Local Municipality’s outstanding debt to Eskom currently stands at R328,711,887 for bulk electricity supply. This amount excludes an additional R3,682,099 from the current account, which was due on 20 November 2024. Despite Eskom’s continuous efforts to recover the debt, the last payment received from the municipality was R150,000—made over three years ago on 5 October 2021.
Eskom highlighted the municipality’s failure to remit payments despite collecting funds from local customers for electricity services. The utility stressed that this practice is “not sustainable” and has severely impacted Eskom’s ability to operate financially.
“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 at Eskom’s detriment and it is not sustainable,” the utility noted.
A Measure of Last Resort
The decision to disconnect the municipality’s electricity supply is seen as a measure of last resort. Eskom explained that it can no longer bear the financial strain caused by the municipality’s breach of its payment obligations. The situation, it argued, jeopardises the national utility’s ability to provide electricity sustainably.
“Eskom must exercise its right to disconnect the supply of electricity to the municipality to protect the national interest in the sustainable supply of electricity to support economic growth,” the statement read.
Eskom has invited all affected parties, including businesses, residents, and other stakeholders, to submit written comments, objections, or representations regarding the planned disconnections. Submissions will close on 6 January 2025, and Eskom will announce its final decision by 16 January 2025.
The Impact on Communities and the Economy
Acknowledging the potential hardship the disconnections may cause, Eskom expressed its regret over the possible negative effects on the community and the local economy. However, the utility maintained that the municipality’s failure to meet its financial obligations leaves no alternative.
“Eskom appreciates the hardships the community and the economy will suffer should it exercise its statutory powers to disconnect the municipality. There are no other meaningful options available for Eskom to stop the debt from growing and to collect for current consumption on bulk supply.”
The municipality’s ongoing non-payment directly undermines Eskom’s capacity to ensure a stable national electricity supply. As a result, communities in Boshof, Seretse, Dealesville, and Hertzogville face the risk of daily interruptions in their electricity supply.
Interventions Since 2021
Eskom outlined its efforts since 2021 to assist Tokologo Municipality in meeting its debt obligations. Despite multiple interventions and support initiatives, the municipality has continued to default on payments. The utility underscored the constitutional responsibility of municipalities to cooperate with Eskom to ensure affordable electricity for citizens.
“In terms of the Constitution and the Intergovernmental Relations Framework, the municipality is supposed to cooperate and assist Eskom with fulfilling its mandate of ensuring that citizens have access to affordable electricity. The municipality has breached these obligations by not paying Eskom for the bulk electricity it supplies, making it impossible for Eskom to fulfill its mandate.”
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