The court ordered that the municipality appoint Eskom as its service delivery agent to perform all functions and services relating to the municipality’s electricity business.
Eskom and Emfuleni Local Municipality have also reached an agreement relating to the attachment of the bank accounts and ensuring that the municipality can pay salaries to its employees.
Salaries for ELM employees and councilors were paid on Wednesday night in terms of the over-arching agreement on electricity management.
This follows the successful attachment of Emfuleni’s four bank accounts on 11 September 2024 by the Sheriff of the High Court on the instruction by Eskom to enforce the court order obtained against the municipality for non-payment of the bulk electricity account.
Eskom claimed to have attached ELM’s bank accounts for what it said was R8 billion in electricity debt owed by ELM.
In a week of political drama sparked by non-payment of municipal salaries, ELM and the bulk utility – long at odds over R7,2 billion in debt to Eskom – also brought the Pay Eskom Direct process a huge leap closer for Emfuleni business and residents.
The agreement on pay Eskom direct and ELM electricity infrastructure was welcomed by Jaco Verwey, President of the Golden Triangle Chamber of Commerce (GTCoC), which had originally gained the High Court judgment which ordered such an agreement in the first place.
The GTCoC will now formally be part of the agreement implementation in Emfuleni.
Emfuleni Local Municipality and Eskom are committed to work closely together along with other relevant stakeholders to ensure a smooth transition.
The municipality stated in a press release that they are committed to cooperate with Eskom and comply with the Distribution Agency Agreement.
