Cape Town - Finance Minister Pravin Gordhan said National Treasury will act against municipalities which have failed to settle their debt to Eskom, Fin24’s sister publication Netwerk24 reported.

In a letter to Democratic Alliance MP for the Free State David Ross, Gordhan raised his concern over Eskom’s planned power cuts on January 16, saying that National Treasury would consider withholding national grants to the non-paying municipalities.

Judge Hans Fabricius on Thursday ruled in the North Gauteng High Court that Eskom may cut off power supply to the eight indebted municipalities as a means to recover outstanding debt. The ruling came after AfriForum filed an urgent court bid to prevent Eskom from cutting the power supply to the eight indebted municipalities.