Utility says the debt threatens its ability to maintain essential infrastructure and invest in new technologies
07 May 2024 - 11:06
by Staff Writer
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Eskom says it has applied to the Johannesburg high court for an order to force Johannesburg’s City Power to pay its debt, which stood at R1bn on March 31.
“The case has been enrolled for hearing on June 4. The power utility started to default on its payments from October 2023 and no payment was received for the March 2024 invoice,” Eskom said in a statement.
Eskom said the debt owed by City Power had worsened its already strained financial situation and threatened its ability to maintain essential infrastructure, invest in new technologies and meet the growing energy demands of the province.
“Over and above, City Power declared a dispute regarding potential overbilling on bulk purchase invoices dating back to 2021. Eskom denies the claims made by City Power and will prove its position through the arbitration process.”
The power utility said in terms of the electricity supply agreements sanctioned by the Electricity Regulation Act, if a municipality raised a dispute with Eskom, it must still pay.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Eskom sues City Power for R1bn debt
Utility says the debt threatens its ability to maintain essential infrastructure and invest in new technologies
Eskom says it has applied to the Johannesburg high court for an order to force Johannesburg’s City Power to pay its debt, which stood at R1bn on March 31.
“The case has been enrolled for hearing on June 4. The power utility started to default on its payments from October 2023 and no payment was received for the March 2024 invoice,” Eskom said in a statement.
Eskom said the debt owed by City Power had worsened its already strained financial situation and threatened its ability to maintain essential infrastructure, invest in new technologies and meet the growing energy demands of the province.
“Over and above, City Power declared a dispute regarding potential overbilling on bulk purchase invoices dating back to 2021. Eskom denies the claims made by City Power and will prove its position through the arbitration process.”
The power utility said in terms of the electricity supply agreements sanctioned by the Electricity Regulation Act, if a municipality raised a dispute with Eskom, it must still pay.
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