Eskom Issues Disconnection Notice to Tokologo Municipality Over Unpaid Debt

According to Eskom, the total outstanding amount for bulk electricity supply is R328 711 887, excluding the current bill of R3 682 099, which became due on 20 November 2024.

Eskom has announced the publication of a disconnection notice for Tokologo Local Municipality in the Free State due to an outstanding electricity debt of R328 million. The power utility confirmed that the decision to disconnect the bulk electricity supply is in line with the Promotion of Administrative Justice Act (PAJA) and follows a prolonged period of non-payment by the municipality.

According to Eskom, the total outstanding amount for bulk electricity supply is R328 711 887, excluding the current bill of R3 682 099, which became due on 20 November 2024. Despite the municipality’s obligation to pay for the electricity supply, Eskom has not received any substantial payments since October 2021, when the last payment of only R150,000 was made.

Impact on Affected AreasIf the disconnection proceeds, bulk electricity supply to the municipalities of Boshof, Seretse, Dealesville, and Hertzogville will be interrupted daily starting on 31 January 2025. The interruption will occur for a set number of hours per day, severely affecting the communities and businesses in these areas.

Eskom’s Justification for Disconnection

Eskom stated that despite multiple efforts to engage with the municipality and encourage payment, the outstanding debt continues to grow, undermining the utility’s ability to sustain national electricity supply. The utility emphasized that the municipality has not adhered to its constitutional obligations by collecting funds from its customers and failing to remit the appropriate portion to Eskom.

“The municipality is responsible for discharging its constitutional duty, but it continues to withhold payments to Eskom, putting Eskom’s financial sustainability at risk,” said Eskom in a statement. The utility noted that the decision to disconnect electricity is a measure of last resort to prevent further accumulation of debt, which could ultimately affect the national power grid.

Public Consultation and Stakeholder Involvement

In accordance with regulatory procedures, Eskom has invited written representations from affected stakeholders to explain why the utility should or should not proceed with the disconnection. The deadline for submissions is 6 January 2025, and Eskom will make its final decision on or before 16 January 2025.

Eskom’s Previous Efforts to Resolve the Debt

Eskom outlined a series of interventions aimed at helping the municipality settle its debt since 2021, including exploring various avenues to facilitate payment. Despite these efforts, Eskom stated that the municipality’s ongoing failure to meet its financial obligations has led to the situation reaching an unsustainable point.

“Eskom has no other meaningful options available to stop the debt from growing and to recover payments for current electricity consumption,” the statement read. Eskom also highlighted that the Constitution and the Intergovernmental Relations Framework require municipalities to cooperate with Eskom in ensuring affordable electricity access for citizens, something the municipality’s actions have impeded.

Potential Consequences for the Community and Local Economy

While Eskom expressed its understanding of the hardships the disconnection could cause, including economic impacts on local businesses and communities, it emphasized that its decision is necessary to protect the broader national interest. Without addressing the escalating debt, Eskom risks facing financial strain, which could affect its ability to fulfil its mandate and continue providing reliable electricity to the nation.

Eskom has stressed that stakeholders, including local communities, must work together to help the municipality resolve the debt issue and ensure the long-term stability of the electricity supply in the area.