The KHLM reported that it does not have direct relation problems with Eskom; but the KHLM argued that it is being prejudiced by the fact that Eskom is the sole electricity provider to approximately 40 per cent of consumers in municipal area. The KHLM said that it does not receive any share in the income that Eskom generates from their municipal area. The KHLM added that it competes with Eskom with regard to tariff structures. Furthermore, the KHLM said that it does not benefit from subsidies that Eskom receives from government for capital projects and developments.