Eskom mistaken about its right to terminate electricity supply to paying customers - Sakeliga
16 October 2020
Eskom is drawing mistaken conclusions from the judgment this week in the Pioneer Foods case against Eskom, the Walter Sisulu Local Municipality, and NERSA.
Contrary to its media statement, Eskom does not have the general right to terminate electricity supply to paying customers in defaulting municipalities. The judgment in the Gauteng Local Division Johannesburg is an outlier judgment if compared to the dozens of other judgments in which High Courts have found against Eskom. The Pioneer Foods finding is the result of facts specific to the application brought by Pioneer Foods and has not set a new legal precedent.
Piet le Roux, Sakeliga CEO, says that it would be a mistake for Eskom to be emboldened in its current debt collection strategy by the Pioneer Foods case.
“The judgment does not, contrary to Eskom’s suggestion, constitute license to resume electricity supply terminations. Terminating supply to paying end-users in imploding municipalities is neither a solution nor legal. Solutions should rather be sought with rerouting electricity payments away from the coffers of delinquent municipalities, where it is trapped, stolen, wasted, and prevented from reaching suppliers of services and infrastructure, of which electricity is but one example.”