Municipality collected 90% of electricity bills but failed to pay Eskom | Business

Eskom will take over the electricity business of Emfuleni Municipality in the wake of"spiralling debt" of R3.5 billion.

This is the upshot of a court ruling handed down this week which revealed that the municipality, which owes Eskom about R3.5 billion, is in a"state of disaster". The court said the case involved more than money; it threatened Eskom’s ability to provide electricity to the rest of the country. Emfuleni claimed that it"lacked capacity to switch off the power" during load shedding, which Eskom said could result in the collapse of the national grid and a national black-out.

Eskom, in its submissions to the court, said it had to borrow money and ask the government for cash bailouts because of the crisis in the municipality. "There is no dispute that Emfuleni owes Eskom. The real challenge in this case is the astronomical scale of the debt."

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