Eskom has announced plans to disconnect bulk electricity supply to the Tokologo Local Municipality in the Free State due to an outstanding debt exceeding R300 million.
The municipality has accumulated significant arrears, with Eskom confirming that it is owed R328,711,887 for bulk electricity supply, excluding an additional R3,682,099 due in November.
“Should Eskom proceed with the disconnection, bulk electricity supply to Boshof, Seretse, Dealesville, and Hertzogville will be interrupted daily from January 2025 for a set number of hours per day,” Eskom warned.
The last payment received from the municipality was a mere R150,000 in October 2021, leaving a large and growing debt burden.
Eskom accused the municipality of collecting payments from customers but failing to remit the portion owed to the utility.
“The municipality charges, collects, and receives money from its customers for the supply of electricity but fails to hand over the portion due to Eskom,” the utility explained.
The decision to issue a disconnection notice was described as a “last resort” to prevent the debt from escalating further.
Eskom emphasised its constitutional duty to ensure a sustainable electricity supply for the nation, noting that the ongoing non-payment jeopardises the utility’s ability to support economic growth.
Eskom is seeking written submissions from all affected parties, urging them to provide reasons why the disconnection should or should not proceed.
The utility acknowledged the potential hardships this action could cause for the Tokologo community but stressed that it had no viable alternatives to recover the mounting debt.
“This is at Eskom’s detriment and it is not sustainable. The municipality is responsible for discharging a constitutional obligation but decides to withhold payments to Eskom. The decision by Eskom to proceed with the process to disconnect electricity supply is a measure of last resort to prevent the debt from spiralling out of control.”
