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Eskom won a case in South Gauteng Superior Court that it said asserted its right to interrupt or interrupt electricity to non-paying customers.
The case, which was brought against the utility company by Pioneer Foods, sought to review and overturn a 2018 Eskom decision to cut off electricity to the municipality of Walter Sisulu.
The utility company had taken the move after the municipality, which is located in the Eastern Cape, failed to pay for the electricity supplied.
The court ruled that Pioneer Foods had no standing in the electricity supply agreement between Eskom and the municipality and dismissed the application with costs.
Because Pioneer Foods is a client of the municipality, the court said it had no legal rights to take the case against Eskom to court.
The court added that Pioneer Foods had a recourse available to file a dispute with Nersa, which it did not do.
“This is a landmark ruling that affirms the validity and legality of Eskom’s rights, powers and authority to invoke section 21 (5) of the Electricity Regulation Act of 2006 to interrupt the supply of electricity to a delinquent customer.” Eskom said.
“Eskom welcomes this landmark ruling as the court has established the important legal principle that Eskom is only obligated to supply electricity to paying customers,” he added.
R31 billion in municipal debt
The court further held that the disruptions to Eskom’s supply to the defaulted municipality were important and necessary for the survival of the utility.
Walter Sisulu Township is one of many in the country that currently owes Eskom electricity.
As of December 2019, the municipality had incurred a debt of R222 million with Eskom.
According to Eskom, the decision will help improve the collection efforts of the utility company from the municipalities in default, which collectively owe Eskom more than R31 billion in past-due debt.
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