A watershed judgment by the Supreme Court of Appeal (SCA) has dealt a hefty blow to Eskom’s plans to collect from non-paying customers in finding that the utility’s decision to interrupt power supply to two defaulting municipalities was irrational.

Eskom is weighed down by R480bn in debt and remains reliant on government bailouts to survive. It is, however, working to control costs and increase revenue and has in numerous instances interrupted power supply to non-paying municipalities in a bid to extract payment...

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