National power utility Eskom says it does not understand why some municipalities failing to settle their accounts on time choose to rush to the courts instead of simply paying what’s due.
Eskom’s Central East Cluster general manager Agnes Mlambo said this after Letsemeng Local Municipality in the Free State and Matlosana Local Municipality in the North-West were forced in two separate court rulings this week to settle the arrears for their bulk electricity supplies and always pay on time as they are legally obliged to do.
Mlambo, who is responsible for the Free State and KwaZulu-Natal region, says she finds it incredible that some municipalities are willing to spend millions on legal costs instead of using the funds to pay for electricity services delivered by Eskom.
“This proves the unwillingness of these municipalities to do the right thing, which is to fulfil their legal duties by paying Eskom for electricity supplied,” Mlambo is quoted as saying in a statement.
“These municipalities collect revenue from electricity sales at a mark-up from their customers, but do not pass the revenue on to Eskom.
“In the meantime, Eskom must cover the costs of diesel, coal, salaries and other expenses to keep supplying electricity to these non-paying municipalities.”
Eskom provincial spokesperson Stefanie Jansen van Rensburg said the judgments conclude lengthy legal battles that started in 2020 when the power utility served the municipalities with notices to interrupt electricity services due to non-payment of their electricity accounts.
“Both judgments are unambiguous on the obligation of the municipalities to service their Eskom current accounts and pay arrear debt,” said Van Rensburg.
She said since the start of the legal proceedings, the two municipalities have been taking payment holidays but they now have to pay.
In January 2020, Letsemeng’s arrear debt totalled R41.1-million.
Now, two and a half years later, the municipality’s overdue debt has risen to R119.7-million and it is faced with paying the legal costs of both parties.
And similar to Letsemeng, Matlosana’s arear debt stood at R422.4-million in January 2020 and has now reached a staggering R1.054-billion.
Eskom Northern Cape and North- West Cluster general manager Marion Hughes said payment for services is imperative for institutions to be sustainable.
“We should not have to use extraordinary measures, like the courts, in order to receive payment for services rendered,” said Hughes.
“For Eskom to survive another 99 years and more, a high sense of responsibility and commitment is needed by all.” – Staff Reporter