Eskom Issues Disconnection Notice to Tokologo Municipality Over R300 Million Debt.


BLOEMFONTEIN: Eskom has announced the publication of a disconnection notice for bulk electricity supply to Tokologo Local Municipality in the Free State due to an unpaid debt of R300 million. The state-owned power utility said the action is per the provisions of the Promotion of Administrative Justice Act (PAJA).

According to South African Government News Agency, Eskom’s statement warns that should the disconnection proceed, the electricity supply to the towns of Boshof, Seretse, Dealesville, and Hertzogville will be interrupted daily starting 31 January 2025 for a set number of hours each day. The municipality currently owes Eskom R328,711,887 for bulk electricity supply, excluding an additional R3,682,099 on the current account, which became due on 20 November 2024. The last payment received from the municipality was R150,000 on 5 October 2021.

Eskom claims that the municipality collects money from its customers but fails to remit the portion due, which negatively impacts Eskom’s financial sustainability.
The utility describes the planned disconnection as a last resort to prevent the debt from escalating further. Eskom emphasizes that the municipality’s breach of payment obligations jeopardizes the utility’s ability to maintain a financially sustainable national electricity supply.

The utility has invited affected parties to submit written representations or comments regarding the planned disconnection. The deadline for these submissions is 6 January 2025, with Eskom’s final decision to be communicated by 16 January 2025. Eskom acknowledges the potential hardships the community might face and notes the absence of other viable options to recover the debt.

Eskom has outlined past interventions by stakeholders aimed at empowering the municipality to settle its debts since 2021. Despite these efforts, Eskom states that it can no longer afford to continue accommodating the municipality without incurring further financial strain. The utility emphasizes that the municipality’s non-payment breaches constitutional ob
ligations and hinders Eskom’s mandate to provide affordable electricity access to citizens.