Eskom has attached the bank accounts of the Emfuleni Municipality to recover R8 billion in debt.

The power utility announced on Wednesday night the Sheriff of the Court had successfully attached Emfuleni’s four bank accounts to ensure that the money collected for electricity is paid directly to Eskom.

Spokesperson Daphne Mokoena says the Municipality, that manages Vanderbijlpark, Vereeniging, Evaton and Sebokeng, among other towns, had failed to comply with the requirements of the National Treasury’s debt relief program on multiple occasions.

The attachment of the bank accounts allows Eskom to receive payment for the electricity it supplies, ensuring continued service to the municipality’s customers. Eskom has exhausted all legal and mediation avenues to secure payment for services rendered since 2018.

Municipal debt remains one of Eskom’s biggest challenges.

Mokoena confirmed collecting municipal debt will remain a key focus for Eskom, adding the power utility will start employing various strategies to recover owed funds.

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.

As of 31 August 2024, Emfuleni owes R8,052,093,269.36 for bulk electricity.

This amount represents about 10% of the total R82 billion owed by municipalities and places Emfuleni among the top three municipalities in debt to Eskom.

As of the end of March 2024, municipal arrears stood at around R74.4 billion, with an increase of approximately R15.9 billion during the last financial year (1 April 2023, to 30 March 2024).

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