Jun 18, 2021

Mawazo Writing Africa

Writing about the main

Eskom in a contractual dispute with a critical service provider

South Africa’s public electricity company Eskom is in the middle of a contractual dispute with Texas-based American technology company Oracle, which provides the electricity company with a range of technical support services.

Eskom said in a statement on Monday May 5th. April that it put in place “contingency measures” to reduce its reliance on Oracle Corporation in the event the supplier withdraws its services – which it fully intends to do.


Oracle initially claimed that Eskom had about 7.3 billion .R underpaid what Eskom denied. In further negotiations, Oracle reduced the amount to less than R400 million. The electricity company also denied this and stated that, according to Oracle, the total was actually R166 million.

Eskom offered who paid the R166 million and offered to settle the dispute “legally and sustainably” through a review and trial.

“When Oracle rejected this approach and threatened to end its services for Eskom, it turned Eskom to the Supreme Court to compel Oracle It is important to continue providing technical support services for the duration of the agreement through April 2022, “the electricity company said.

On Thursday April 1st, declined The Johannesburg Supreme Court submitted the application, but the Parastatal intends to start an application for permission to appeal.


According to The Sunday World , the utility company relies on Oracle products and services for several critical operations, including the online sales system that drives 77 million electricity sales transactions per month enables and records.

Other services and products provided by Oracle enable Eskom to distribute power to prepaid customers. Earn revenue and locate and repair errors in the sales system.

“With regard to technical support, Eskom has assessed the risks in the event that Oracle withdraws technical service support. Eskom has preliminary risk mitigation processes in place to reduce the risk of operational disruption, ”the utility said.

The utility described Oracle’s actions as“ unfortunate ”and said it was a company that is dealing with this issue public money refuses to “be bullied into paying money outside of legal process”.