Eskom Deposit Amount: All you Should Know

As a new customer who wants to create an electricity account with Eskom, you’re expected to deposit a certain amount of money, which will serve as a security deposit.

The primary aim of the Eskom deposit amount is to serve as a financial guarantee for Eskom. This means that this deposit gives assurance to Eskom that the new customer will pay their electricity bill on time. However, if the customer fails to pay, then Eskom can use this deposit to cover the outstanding bill amount.

So, the Eskom deposit amount serves as guarantee to Eskom and it assures them that payment for their services will remain intact should the customer default. 

The main reason why Eskom requests deposit amounts from new customers is to ensure their total commitment to paying their electricity bills on time, thereby enhancing the smooth running of Eskom in generating and distributing electricity to customers. 

However, the amount of money that the new customer is expected to deposit is not fixed; it is dependent on the new customer’s creditworthiness, the size of the property, and the type of electricity service that the customer needs. 

What is the Eskom deposit amount?

The Eskom deposit amount is a security deposit that new customers must pay when they open an electricity account. 

This deposit gives financial relief to Eskom, ensuring that customers will pay their electricity bills on time. This deposit replaces other forms of financial security when creating an electricity account with Eskom. 

However, the Eskom deposit amount can be invested in an interest-bearing account at a financial institution like First National Bank, which is one of Eskom’s guarantees. If you invest in an interest-bearing account, you’re definitely going to earn a substantial amount as interest, while the deposit amount still serves its purpose as a security deposit.

What happens is that, once you make this security deposit, you’ll be subconsciously motivated to pay your electricity bills on time because of the implication of defaulting. Once this happens, Eskom can rest assured that they’ll cover the costs they incur in the course of electricity generation and distribution.

Why is the Eskom deposit amount necessary?

The major reason why the Eskom deposit amount is important is that it helps reduce financial risk for Eskom. With the security deposit, Eskom is certain that they have protected themselves against potential non-payment by electricity consumers. 

Since the cost of electricity generation and distribution is high, the Eskom deposit amount helps shield the company against any potential financial losses. With this deposit, customers will pay their electricity bills promptly, knowing that their deposit is at stake should they default.

How is the Eskom deposit amount calculated?

The Eskom deposit amount is not fixed, it is determined by some factors, hence, it calculated based on those variables. So, the Eskom deposit amount is calculated based on the factors below:

• Type of services:whether the electricity account is for residential, commercial, or industrial use
• Property size: Larger properties will have higher deposit requirement because of expected higher consumption
• Historical usage: For existing properties, Eskom may likely consider the historical electricity usage of the property.
• Creditworthiness: Eskom may also evaluate the customer’s creditworthiness. New customers with a good credit history may pay lower deposit amount compared to those with poor credit records. 

How to Pay the Eskom Deposit Amount

Paying the Eskom deposit amount is straightforward. There are different channels that you can use to make the payment. Once you have been notified of the required deposit, all you need to do is:

• Visit an Eskom Customer Service Center: You can make the payment at any Eskom customer service center nearest to you.
• Online Payment: You can make the payment online through the Eskom website.
• Bank Transfer: You can also pay via direct bank transfer.  Ensure that  you include your account reference number for proper allocation.

Refund of Eskom Deposit Amount

In some rare occasions, customers can get a refund of their Eskom deposit amount under certain conditions:

1. Account Closure: When you close your account, Eskom will refund the deposit, as long as you don’t have outstanding electricity bills.
2. Consistent Payment History: In some cases, Eskom may also refund you your deposit if you’re consistent in paying your bills for a over a certain period of time.

How much is the Eskom Deposit Amount

The Eskom deposit amount is not fixed, it is dependent on the property size, type, and creditworthiness of the new customer. If the property is larger and is for industrial use, there is high possibility that the deposit amount will be very big. So, the higher the property size, the higher the Eskom deposit amount and vice-versa.