High Court affirms Eskom’s right to terminate electricity supply to defaulting, non-paying customers
14 October 2020
In a judgement delivered by the South Gauteng high court on Tuesday 13 October 2020, the court affirmed Eskom’s right to interrupt or terminate electricity supply to non-paying customers. This case was brought against Eskom by Pioneer Foods, in which it had sought to review and set aside Eskom’s 2018 decision to interrupt electricity supply to the Walter Sisulu Municipality due to its failure to pay for electricity supplied in terms of the municipality’s agreement with Eskom.
The court ruled that Pioneer Foods had no standing in the electricity supply agreement between Eskom and the municipality, and dismissed the application with costs. Pioneer Foods is a customer of the municipality, and as such had no legal right (locus standi) to bring the case against Eskom to court.
This is a landmark judgment affirming the validity and lawfulness of Eskom’s rights, powers and entitlement to invoke section 21(5) of the Electricity Regulation Act of 2006 to interrupt the supply of electricity to a delinquent customer, in this case the Walter Sisulu Municipality in the Eastern Cape.
Eskom welcomes this landmark judgment as the court has set the important legal principle that Eskom is only obliged to supply electricity to paying customers.