Eskom ponders options for debt recovery from Emfuleni municipality
Power utility Eskom has won a summary judgment against the Emfuleni local municipality for R1.3-billion, which the municipality owes the State-owned entity for unpaid bulk electricity services in 2019.
The R1.3-billion was part of a total debt of R1.9-billion, which the local government had accumulated in 2019.
Eskom had already won judgment for R615-million that kept compounding unabated owing to the municipality’s poor servicing of its electricity account.
Assets belonging to the local municipality were subsequently attached in an attempt to recoup the debt in line with the court order.
To date, Emfuleni’s total debt stands at a staggering R3.5-billion.
“The judgment provides us with several options to recover the debt owed to us.
“We could attach and transfer Emfuleni's electricity infrastructure which comprises its electricity substations and power lines, and offset the value of the infrastructure against the judgment debt and/or attach known electricity revenue streams of the municipality by way of garnishee-type orders,” says Eskom Gauteng customer services senior manager Daphne Mokwena.
Emfuleni ranks as the worst among Gauteng’s municipalities with poor payment levels and arrear debt greater than 30 days of more than R3-billion.
The Emfuleni municipality is followed by Merafong local municipality with over R570-million in debt owed to Eskom, Randwest local municipality with R510-million in debt, the City of Tshwane with more than R200-million and the City of Ekurhuleni with just over R8-million.
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