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

  • 📰 News24
  • ⏱ Reading Time:
  • 40 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 19%
  • Publisher: 80%

United Kingdom News News

United Kingdom United Kingdom Latest News,United Kingdom United Kingdom Headlines

Eskom will take over the electricity business of Emfuleni Municipality in the wake of 'spiralling debt' of R3.5 billion. The Pretoria High Court found that the municipality had collected 90% of electricity bills but had not paid Eskom.

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."

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 4. in UK
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

United Kingdom United Kingdom Latest News, United Kingdom United Kingdom Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Eskom declares dispute with Lesedi Local Municipality over R125m debt | BusinessEskom has declared a dispute with the Lesedi Local Municipality in the Sedibeng district of Gauteng after exhausting all avenues to recover what the municipality owes. | News24_Business
Source: News24 - 🏆 4. / 80 Read more »