The Pretoria High Court has given Emfuleni municipality six months to draw up a new settlement agreement with Eskom to pay off its R3.5 billion electricity debt.
This is after the court found that the non-payment by the municipality was unlawful and unconstitutional.
Eskom, which has welcomed the high court’s new settlement decision, says it took the legal route after the municipality failed to adhere to the settlement agreement made between the two parties in 2018.
While Eskom waits for a new payment agreement from the municipality, industrial customers are required to pay their electricity bill directly to Eskom.
The utility says this is to help get some funds from the municipality and to keep the utility running.
Eskom has been in court battles with the municipality since 2018.
Last year, the Pretoria High Court allowed Eskom to attach the municipality’s assets to pay off its R1.3 million debt.
This is as bulk water supplier Rand Water is considering taking the municipality to court for its non-payment of water supply.
Eskom says the non-payment of municipalities puts the utility at risk of financial challenges.
-EWN
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