Eskom attaches bank accounts to recover R8 billion in unpaid bills

Power utility Eskom says it has attached the bank accounts of Emfuleni municipality in a bid to recover R8 billion owed to it.

Following a notice given on 2 July 2024 to the National Treasury and Emfuleni Municipality, Emfuleni is no longer a beneficiary of the Municipal Finance Management Act (MFMA) 124 Debt Relief program due to multiple breaches, the utility said.

“Consequently, the Sheriff of the Court has successfully attached Emfuleni’s four bank accounts to ensure that the money collected for electricity is paid directly to Eskom,” it said.

Eskom said the municipality failed to comply with the requirements of the National Treasury debt relief program.

The attachment of the bank accounts allows Eskom to receive payment for the electricity it supplies, ensuring continued service to the municipality’s customers.

The utility said that had exhausted all legal and mediation avenues to secure payment for services rendered since 2018.

“Eskom cannot financially sustain the electricity debt of the municipality without severely impacting its own operations and the citizens of the country.

“The municipality’s failure to pay for bulk electricity compromises Eskom’s financial stability and its ability to provide affordable electricity,” it said.

As of 31 August 2024, Emfuleni owes R8,052,093,269.36 for bulk electricity. This amount represents approximately 10% of the total R82 billion owed by municipalities and places Emfuleni among the top three municipalities in debt to Eskom.

Municipal said debt remains one of its biggest challenges, with municipal debt of the end of March 2024 topping R74 billion, with an increase of approximately R15.9 billion during the last financial year (1 April 2023, to 30 March 2024).

The utility has also shown that it will not hesitate to approach the country’s courts to collect what is owed.

Eskom is currently battling the City of Johannesburg over R1 billion in unpaid bills, while it has also taken the City of Tshwane on in court in the past over debts owed.

Read: Eskom is in deep trouble