How can the rights of paying consumers to electricity be squared with the rights of Eskom to be paid?'

Abstract

Electricity supply can be classified into three stages namely: generation, transmission and distribution, with the functions of generation and transmission being carried out by Eskom. In 2001, Eskom was converted from a statutory body into a public company having a share capital with its entire share capital held by the State. It is a major public entity and therefore an Organ of State and albeit that Eskom is classified as a public company, it is still a State-owned Enterprise. Municipalities purchase electricity from Eskom in bulk in order to carry out the distribution function and manage bulk supply of electricity to end-users in terms of the Local Government: Municipal Structures Act 117 of 1998 (Structures Act). Municipalities re-sell electricity purchased from Eskom to end-users as well as provide free basic electricity to indigent consumers.