In an attempt to recover over R82 billion for bulk electricity owed by municipalities, Eskom has attached the Emfuleni Municipality's four bank accounts. The municipality owes Eskom over R8bn in bulk electricity supply. 

FAILED TO COMPLY

Eskom said they had set up a debt relief program for the indebted municipality, based in Vereeniging in the Vaal, but Emfuleni has failed to comply with it. The power utility explained that the municipality was issued with a notice in July after breaching the Municipal Finance Management Act's Debt Relief Program. "Consequently, the Sheriff of the Court has successfully attached Emfuleni's four bank accounts to ensure that the money collected for electricity is paid directly to Eskom. So far the municipality owes Eskom R8 billion," Eskom said in a statement.

FOR THE CUSTOMERS 

Eskom said the attachment of the bank accounts will allow them to continue providing electricity to paying customers. The power utility explained that it has been trying to recover debt from the municipality for services rendered since 2018. "Eskom cannot financially sustain the electricity debt of the municipality without severely impacting its own operations and the citizens of the country.The municipality's failure to pay for bulk electricity compromises Eskom's financial stability and its ability to provide affordable electricity," the statement read. Eskom said they will use various strategies to collect money owed to them by municipalities, as this is their main focus. Municipal debt remains one of Eskom's biggest challenges. As of the end of March 2024, municipal arrears stood at around R74.4 billion, with an increase of approximately R15.9 bn during the last financial year.