ESKOM’S RIGHT TO DISTRIBUTE ELECTRICITY WITHIN MUNICIPAL BOUNDARIES

We assisted Eskom Holdings in a dispute regarding the right to distribute electricity in a municipal area. The challenge related to whether South African municipalities have an exclusive power to supply electricity to consumers within municipal boundaries.  The High Court found that the Constitution of the Republic of South Africa 1996, does create an exclusive right for municipalities to supply electricity within their boundaries, but that Eskom may supply any customers within its area of supply if a municipality does not already supply such customer.