BIA welcomes Eskom judgement

The Brits Industrial Association (BIA) welcomes the judgement against South Africa’s power utility, Eskom, which was handed down by the High Court in Pretoria on May 24.

The court reaffirmed Eskom’s duty to fully comply with the process laid out in the Promotion of Administrative Justice Act (PAJA) prior to coming to any decision to disrupt power supply to Madibeng Municipality, in the North West. Earlier this year Eskom cut the power supply to Madibeng Municipality, as a result of unpaid debt, without adequate prior consultation.

In court Eskom conceded, undertaking that, in future, it will adhere to a fully compliant PAJA process before attempting to interrupt the supply of electricity to all municipalities.

Wimpie Greyling, BIA chairman, says: “We are very pleased with the court ruling in that the BIA acknowledges Eskom’s role as the national power supplier and appreciates its obligation to practice good governance and collect the revenue owed to them while also complying with the procedures contained in the PAJA.

“We look forward to engaging with Eskom, the National Energy Regulator (NERSA) and the Madibeng Municipality to reach a resolution that benefits all those involved and assists industry in maintaining a strong economic presence in the local community.”

Eskom is required under the PAJA to provide reasonable opportunity for submissions from all relevant stakeholders, including local businesses as represented by the BIA and other members of the community, before making such decisions.

“The BIA is now ready to help develop plans and take actions to prevent any possibility of a power supply disruption as a result of Eskom’s outstanding debt burden, with Madibeng becoming unsustainable,” says Greyling.