Eskom Holdings SOC Ltd v Resilient Properties (Pty) Ltd and Others; Eskom Holdings SOC Ltd v Sabie Chamber of Commerce and Tourism and Others; Chweu Local Municipality and Others v Sabie Chamber of Commerce and Tourism and Others (663/2019; 664/2019; 583/2019)
Eskom Holdings SOC Ltd v Resilient Properties (Pty) Ltd and Others; Eskom Holdings SOC Ltd v Sabie Chamber of Commerce and Tourism and Others; Chweu Local Municipality and Others v Sabie Chamber of Commerce and Tourism and Others (663/2019; 664/2019; 583/2019) [2020] ZASCA 185; [2021] 1 All SA 668 (SCA); 2021 (3) SA 47 (SCA) (29 December 2020)
Eskom's decision to interrupt bulk electricity supply to municipalities for non-payment, while contractually and statutorily permitted under section 21(5) of the Electricity Regulation Act and the supply agreements, was subject to constitutional constraints. The court held that Eskom, as an organ of state, was required to exhaust intergovernmental dispute resolution mechanisms under section 41 of the Constitution and the Intergovernmental Relations Framework Act before taking drastic measures that would undermine municipalities' ability to provide basic services. The interruption decision con…
Source excerpt
- Cooperative Government
- Electricity Regulation Act
- Municipal Finance Management Act
- Intergovernmental Relations Framework Act
- Promotion Of Administrative Justice Act
- Basic Services Provision