Larger power users(LPUs) in Emfuleni Local Municipality(ELM) are set to pay their electricity consumption directly to Eskom with immediate effect.
This comes after a court order handed down by the Pretoria High Court in July 2023.
The court judgement came after the municipality failed to adhere to an order issued in November 2018, where relief was granted to eight ELM industrial customers to pay Eskom directly.
Eskom, joined by other applicants, approached the court again for relief and the matter was heard in March 2023, and the judgement was issued on July 5, 2023.
The order stated that the municipality must appoint Eskom as its service delivery agent to perform all functions and services relating to the municipality’s electricity business on its behalf.
According to the court order, Eskom and the municipality are to implement and finalise the terms of the agreement within six months from the date of the order subject to the appropriate oversight from the National Energy Regulator of South Africa(NERSA).
In the judgement, the court also ordered that in the interim, industrial customers must pay Eskom directly pending the implementation of the agreement between the power utility and the municipality.
It is therefore compulsory for all LPUs to pay the total electricity component, inclusive of the electricity VAT portion of the municipality invoice, directly to Eskom.
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Eskom said it will comply with the court order and continue to work with the municipality to ensure that the community of Emfuleni benefits from this partnership.