Eskom can cut your power off

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Published May 25, 2017

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Johannesburg

- The Pretoria High Court has confirmed the constitutional right of Eskom to

effect scheduled electricity interruptions when it dismissed applications by

AfriForum and other businesses.

In a statement, issued by Eskom on Thursday,

the utility’s head of legal, Suzanne Daniels, says “Astral, Bridgestone,

AfriForum and Mediclinic had sought to prevent Eskom from utilising its

constitutional right of scheduled interruptions in Madibeng, Lekwa and

Kamiesberg to recover overdue debt”.

The

applicants’ contention, heard between May 2 and 3, was that Eskom’s conduct, in

all the cases, is unconstitutional, unlawful and unreasonable and should

accordingly be reviewed and set aside.

The applicants’ sought different relief against

Eskom in the following orders:

-                 

color:#222222;mso-ansi-language:EN-US"> declaratory orders to the effect

that Eskom is not permitted to interrupt the supply of electricity to any local

authority as a means to collect acknowledged debts owed to it;

-                 

color:#222222;mso-ansi-language:EN-US"> final interdicts interdicting Eskom

from exercising the power to interrupt electricity as a debt collection

measures in respect of any local authority; alternatively;

-                 

color:#222222;mso-ansi-language:EN-US"> interdicts restraining Eskom from

exercising such power without in each instance first obtaining an order of

court authorising it to do so;

-                 

color:#222222;mso-ansi-language:EN-US"> orders reviewing and setting aside

Eskom’s decision to interrupt electricity to the municipalities on

constitutional and administrative law ground; and

-                 

color:#222222;mso-ansi-language:EN-US"> challenging the constitutionality of

section 21(5) of the Electricity Regulation Act (ERA) and inviting the court to

read into the section a requirement of judicial pre-authorisation for the

termination or reduction of the supply of electricity when employed as a means

of debt collection; and

-                 

color:#222222;mso-ansi-language:EN-US"> an order directing one of the

applicants (Astral) to make direct payment to Eskom.

On the second day of the hearing Eskom and Astral

reached a settlement agreement in respect of the direct payment relief and the

hearing proceeded with the matters of the three remaining applicants, Eskom

says.

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Eskom opposed all the relief sought on the

other issues raised by the remaining applicants, arguing the mootness of all

the cases and the legislative rights of Eskom to interrupt or terminate electricity

in terms of the law, it notes.

Eskom adds the court agreed with all the arguments it presented, which were

essentially that it is empowered by statute to disconnect defaulting customers,

which includes the municipality.

“In granting the judgment in favour of Eskom,

the court confirmed that any exercise by Eskom of the power in section 21(5) of

ERA will be administrative action reviewable by the court on the ground of

legality, reasonableness and procedural fairness under section 33 of the

Constitution and the Promotion of Administrative Justice Act (PAJA),” Daniels

states.

“This victory is a critical step in the

sustainability of Eskom given the levels of indebtedness within the municipal

sphere. As a key enabler of the economy, Eskom’s sustainability is vital for

the development of our nation,” Daniels notes.

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