File image File image
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.
Read also: Eskom board may face chop over #BrianMolefe
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.
ONLINE
