Eskom wins R1.3 billion judgment against Emfuleni Local Municipality

Power utility Eskom has won a summary judgment against Emfuleni Local Municipality for R1.3 billion.

The municipality owed the parastatal for unpaid bulk electricity services back in 2019. 

The R1.3 billion forms part of a total debt of R1.9 billion, which the local government had accumulated in 2019. 

Eskom had already won a judgment for R615 million, which kept compounding unabated due to the municipality’s poor servicing of its electricity account. 

Eskom then seized assets belonging to Emfuleni in an attempt to recoup the debt in line with the court order. 

But to date, Emfuleni’s total debt stands at a staggering R3.5 billion, including the current account bill of R385 million due on 2 September. 

“There are several options the court’s made available to recover the debt owed to us,” said Gauteng customer services senior manager, Daphne Mokwena.

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Eskom can now attach and transfer Emfuleni’s electricity infrastructure, which includes the area’s substations and power lines, and offset the value of the infrastructure against the judgment debt.

It can also attach municipality electricity revenue streams through garnishee-type of orders.

Emfuleni ranks as the highest among Gauteng municipalities with poor payment track records and arrear debt of more than 30 days, exceeding R3 billion. 

Next on that list is Merafong Local Municipality with over R570 million, followed by Rand West City Local Municipality above R510 million, the City of Tshwane above R200 million and the City of Ekurhuleni above R8 million, respectively. 

The Mogale City Local Municipality has since signed a payment agreement with Eskom for its outstanding total debt of more than R361 million and has been honouring its payments. 

“We would like to thank and commend the Gauteng municipalities with good payment records, which are City of Johannesburg (City Power), Midvaal Local Municipality and Lesedi Local Municipality for consistently honouring their payment obligations on time”, said Mokwena.

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