Eskom welcomes green light from SCA to recover municipal debt
Eskom has welcomed a
court ruling that's upheld the utility's right to recover outstanding debt from
municipalities.
The Supreme Court of Appeal ordered Letsemeng Local
Municipality in the Free State last week to pay the ailing power producer over
R108,5 million it's owed for years.
It's been given 30 days to do so.
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Spokesperson Sikhonathi Mantshantsha says the ruling proves that Eskom's legally entitled to recover debt from non-paying municipalities. He says their attempts - in the past - have led to conflicting high court judgments.
"The Supreme Court has now upheld Eskoms's indictment to received payment from all municipalities for electricity it supplies to them.
"Of course the well-known fact that the municipalities owe Eskom more than 44 billion rand in unpaid debt which Eskom is committed to recovering and will do everything that it can."
