Emfuleni Local Municipality has officially signed a distribution agency agreement with Eskom, as directed by a Pretoria High Court ruling in July last year. The agreement mandates Eskom to take over as Emfuleni’s service delivery agent, managing all operations related to the municipality’s electricity supply, the national utility said in a statement.

The development follows ongoing challenges between Eskom and Emfuleni, particularly regarding the municipality’s outstanding debt of R8 billion. In September, Emfuleni accused Eskom of “unfair play” following the attachment of the municipality’s four bank accounts to recover overdue payments.

Eskom and Emfuleni have also reached an agreement regarding the attachment of bank accounts to ensure staff salaries are paid, Eskom said. “This follows the successful attachment of Emfuleni’s four bank accounts on September 11 by the Sheriff of the High Court on instruction by Eskom to enforce the court order obtained against the municipality for non-payment of the bulk electricity account.” Emfuleni is reportedly one of the largest defaulters owing about 10% of the total R82 billion owed to Eskom by municipalities nationwide.

“Emfuleni has committed to cooperating with Eskom and adhering to the terms of the distribution agency agreement to resolve the municipality’s electricity supply challenges. We are committed to working closely together with other relevant stakeholders to ensure a smooth transition,” Eskom said.