Eskom notes court judgment on Emfuleni Local Municipality bank accounts attachment dispute

13 November 2024

Eskom notes the court judgment regarding the attachment of the Emfuleni Local Municipality’s bank accounts due to non-payment of its current electricity account. The matter was heard before Judge Neukircher of the Gauteng High Court on 18 October 2024, following Emfuleni’s application to the court.

It is important to note that by the time the matter was heard on 18 October 2024, Eskom had already released all Emfuleni bank accounts, and both parties had signed the Distribution Agency Agreement (DAA) (as instructed by the Pretoria High Court order on 5 July 2023), thus rendering the “Part A” order moot.

Emfuleni sought to set aside or suspend Eskom’s attachment of its bank accounts, arguing that the municipality is part of a National Treasury Debt Relief Programme. The case was divided into two parts, with the recent judgment on “Part A” focusing solely on the interim relief pending the finalisation of “Part B”.

The Court did not make any findings against Eskom regarding the unconstitutionality, unlawfulness, or invalidity of the attachment. These issues will be addressed in Part B of the case.

Judge Neukircher stated that it is not for the Court to decide whether Emfuleni remains a participant in the Debt Relief Programme at the stage of Part A, as this issue will be addressed in Part B.

Municipal debt to Eskom currently stands at approximately R90 billion, posing a significant financial burden that affects Eskom’s ability to deliver affordable and reliable electricity. Eskom remains committed to recovering outstanding debt from defaulting municipalities to strengthen the power supply for the benefit of all South Africans. Debt collection efforts are essential for maintaining stable electricity supply and minimising reliance on government and interventions such as loadshedding.

Issued by Eskom Media Desk, 13 November 2024