Johannesburg - Poultry producer Astral Foods has won an assurance
from Eskom that the power utility will not cut off supply to its Standerton
operation.
This comes after Astral was in the North Gauteng High
Court for past two days over its application against Eskom to fend off the
threat of disruptions in electricity supply to its operations in the Lekwa
municipal region (Standerton).
On Wednesday, it said an agreement offered by Eskom was concluded
in terms of which the utility will not disrupt electricity supply to Standerton
as previously threatened, which would have had devastating consequences for
Astral’s operations.
“We are very pleased with this victory, which resulted in
the settlement agreement being made an order of court thereby protecting
Astral’s operational interests in the region permanently,” says CEO Chris
Schutte.
Read also: Chickens in danger of starving
This followed a previous judgement in February 2017 in the
North Gauteng High Court in which Astral was granted temporary relief from
electricity interruptions pending further argument in the High Court, which
played out over the past two days.
The original complaint was based on planned action from
Eskom whereby they would cut electricity supply to the Standerton as a result
of the municipality’s incompetence and failure to pay over monies collected
from consumers in the region and service mounting debt.
Astral will now receive uninterrupted power supply to its
operations in Standerton on the basis that Astral will make direct payments to
Eskom for its electricity consumption. As per the court order, Eskom will bear Astral’s
legal costs for all applications in this matter, including the earlier interim
relief application.
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