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The City of Tshwane's Eskom electricity debt stands at about R3.2bn, having grown further over July and August because of erratic payments. File picture: THULANI MBELE.
The City of Tshwane's Eskom electricity debt stands at about R3.2bn, having grown further over July and August because of erratic payments. File picture: THULANI MBELE.

Eskom is not pleased as the City of Tshwane's electricity debt continues to increase. The city’s debt reportedly stands at about R3.2bn.

The debt continued to grow in July and August. 

According to Eskom, municipal electricity debt in Gauteng is increasing rapidly. Tshwane and Ekurhuleni jointly owe the power utility R4.7bn as of August 31.

Eskom Gauteng spokesperson Amanda Qithi said the payment patterns by both municipalities had deteriorated to levels that further threatened Eskom’s liquidity, financial performance and sustainability.

She said the erratic payments by Tshwane dating back to 2022 were alarming.

“Also of serious concern is the entrenched practice by the City of Ekurhuleni of settling its account late over the past six months. Despite all the avenues Eskom has explored to recover what is due to the organisation, both municipalities have failed to fully honour their payments and to comply with their electricity supply agreements,” she said.

City manager Johann Mettler acknowledged the debt.

“That translates into just over two months’ worth of revenue that would be due to Eskom. We have engaged Eskom in the past to make payment arrangements … though not to the satisfaction of Eskom,” he said.

Mettler said the city’s ability to make payments stems from problems with collecting water and electricity payments from ratepayers.

The city has several times indicated it was in financial distress.

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