Q&A’s for the Energy Sector, 2009

Whether she will be issuing an instruction advising all parastatals owing money to Eskom to discharge their debts; if not, why not; if so, when? NO2587E

 

All parastatals supplied with electricity by Eskom directly would have entered into electricity supply agreements that govern payment for services rendered. Eskom then engages with the parastatals on that basis for any outstanding debts (as it would with any other customer)

 

It should, however, be noted that the majority of parastatals electricity supply agreements are not directly with Eskom as their offices and infrastructure are generally embedded within municipal distribution areas. As such they are supplied with and billed by the municipal electricity distributor, who in turn purchases its bulk electricity supply from Eskom.

 

In these cases, Eskom’s supply contract is with the municipalities and not the parastatals. The relevant municipalities are therefore responsible for collecting payment on those agreements.