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Department of Economic Development and Tourism

Red Tape Reduction Unit helps Overberg farm resolve long-standing Eskom billing dispute

Farming wheat, agriculture

For more than a year, a commercial farm in the Overberg experienced significant challenges after Eskom incorrectly recorded an electricity meter reading in April 2025. The farm, which produces winter grain crops including wheat, barley and canola, relies on electricity to pump seasonal river water to a holding dam under its lawful water-use rights. Accurate electricity billing is therefore essential to its farming operations.

Following the incorrect meter reading, Eskom continued issuing monthly invoices based on estimated readings, resulting in substantially inflated electricity bills. Despite repeated attempts to resolve the matter through Eskom's online channels, no resolution was reached.

On 15 April 2026, the matter was referred to the Red Tape Reduction Unit through the Red Tape mailbox e-mail, redtape@westerncape.gov.za. The Unit immediately registered the case and engaged with Eskom to facilitate the resolution of the long-standing billing dispute.

Within 19 days, by 4 May 2026, Eskom acknowledged that the account had been incorrectly billed and issued a credit to correct the overcharged amount. 

Client testimonial

"I contacted the Red Tape Reduction Unit and was immediately given a case number. Within two weeks, Eskom accepted that they had overcharged us and issued a credit. Although the refund has not yet been processed, they have acknowledged the billing error. I am extremely grateful to the Red Tape Reduction Unit for their intervention and mediation. I was at a complete dead end before I reached out to them."

Impact of the intervention

This case demonstrates the value of timely government intervention in resolving complex service delivery challenges affecting businesses. The Red Tape Reduction Unit helped secure a resolution to a dispute that had remained unresolved for over a year, preventing the continued financial impact of incorrect electricity charges and restoring confidence in the client's ability to manage a critical operational cost. By facilitating engagement between the client and Eskom, the Unit enabled a fair outcome within 19 days of receiving the case, allowing the business to focus on its core agricultural operations.

The Business Support Helpline Service is a free service offered to all businesses in the Western Cape who face barriers preventing them from growing their operations or even sustaining jobs!