{"id":113940,"date":"2026-05-12T14:15:02","date_gmt":"2026-05-12T14:15:02","guid":{"rendered":"https:\/\/www.artikels.afriforum.co.za\/?p=113940"},"modified":"2026-05-12T14:15:05","modified_gmt":"2026-05-12T14:15:05","slug":"afriforum-takes-steps-to-have-eskom-merafong-power-distribution-agreement-reviewed","status":"publish","type":"post","link":"https:\/\/www.artikels.afriforum.co.za\/en\/afriforum-takes-steps-to-have-eskom-merafong-power-distribution-agreement-reviewed\/","title":{"rendered":"AfriForum takes steps to have Eskom-Merafong power distribution agreement reviewed"},"content":{"rendered":"\n<figure class=\"wp-block-audio\"><audio controls src=\"https:\/\/www.artikels.afriforum.co.za\/wp-content\/uploads\/2026\/05\/Morne-Mostert-ENG.mp3\"><\/audio><figcaption class=\"wp-element-caption\"><em>Soundbite: Morn\u00e9 Mostert (English)<\/em><\/figcaption><\/figure>\n\n\n\n<figure class=\"wp-block-audio\"><audio controls src=\"https:\/\/www.artikels.afriforum.co.za\/wp-content\/uploads\/2026\/05\/Morne-Mostert-AFR.mp3\"><\/audio><figcaption class=\"wp-element-caption\"><em>Soundbite: Morn\u00e9 Mostert (Afrikaans) <\/em><\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">AfriForum has instituted legal proceedings against the Merafong Local Municipality, Eskom, and the National Energy Regulator of South Africa (NERSA) about the legality of a Distribution Agency Agreement (DAA) concluded between Eskom and the municipality.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Earlier this year, Eskom announced in a media statement that it had entered into a DAA with the Merafong Local Municipality due to the municipality\u2019s failure to settle a substantial outstanding debt. In response, AfriForum submitted a formal letter of demand to the municipality requesting clarity on alleged procedural irregularities surrounding the conclusion of this agreement at the end of 2025.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">AfriForum specifically raised concerns about whether the agreement complied with the required legislative framework. The organisation requested proof that all statutory requirements had been met, including the publication of public notices, the undertaking of feasibility studies, and the adoption of council resolutions, as well as the necessary approvals from the National Treasury and NERSA. Despite these requests, the Merafong Local Municipality failed to provide any response.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As a result, AfriForum has now approached the court seeking an order declaring that NERSA has failed in its duties as custodian and enforcer of the regulatory framework provided for in the Electricity Regulation Act.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In addition, AfriForum is asking the court to declare the DAA between Eskom and the Merafong Local Municipality unlawful and invalid and to set it aside.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThis court case is of critical importance,\u201d says Morn\u00e9 Mostert, Head of Local Government Affairs at AfriForum. \u201cWhile it is well known that many municipalities across the country are failing in their core functions \u2013 including the payment of bulk service providers such as Eskom \u2013 it cannot justify bypassing the law.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">AfriForum warns that attempts by Eskom and National Treasury to force municipalities into DAA arrangements without adhering to the prescribed legislative framework set a dangerous precedent. \u201cAllowing unlawful processes to take root undermines the rule of law and opens the door to further governance failures,\u201d Mostert states.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">AfriForum further emphasises that Eskom itself has a troubled track record, including concerns about financial management, procurement processes and tender execution. \u201cPlacing a struggling municipality under the control of an already failing power utility known for corruption, and financial mismanagement is unlikely to resolve the underlying issues,\u201d Mostert adds.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">AfriForum maintains that NERSA should instead fulfil its mandate by identifying non-compliant municipalities, after following necessary processes revoke their electricity distribution licences where necessary, and initiating a transparent process that allows capable service providers \u2013 of which there are many in the country \u2013 to tender for the management of these licences.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">AfriForum remains committed to ensuring that lawful, transparent, and sustainable solutions are implemented to address the country\u2019s municipal and electricity crises.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>AfriForum has instituted legal proceedings against the Merafong Local Municipality, Eskom, and the National Energy Regulator of South Africa 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