As part of the agreement, Eskom agreed to uplift the attachment of the municipality's bank account and it has handed the account back to the municipality.Eskom said it had been involved in numerous court processes since 2014, when the municipality's debt to the power utility stood at R372m.
“The municipality has consistently failed to honour its obligations and payment agreements, as well as court orders, resulting in the debt escalating to R3.4bn over that period,” it said. Eskom said the total municipality debt of R31bn continued to threaten the power utility's sustainability. “Municipalities have a responsibility to fulfil their financial obligations for the bulk supply of electricity,” it said.by the high court in PretoriaThe court had ordered Eskom to immediately restore full maximum electricity supply to several areas in the Free State and Mpumalanga.The department of mineral resources & energy has started the process to procure 2,000MW of “emergency power” and R40bn in investment.
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Eskom given farmland worth R2.5bn as security for municipality's debtThe Matjhabeng local municipality in the Free State has agreed to hand over 139 farms it owns as security on debt owed to Eskom.
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