City Power allowed to appeal judgment in pay dispute with Eskom

City Power has been granted leave to appeal against a ruling by the Johannesburg high court that favoured Eskom over a billing dispute in June.

In June, City Power and the City of Johannesburg were ordered to pay Eskom more than R1bn plus interest accrued for the cost of the bulk electricity supply services for March. 

The court had heard that R1.073bn was due by the end of March, which was the payment order granted in Eskom’s favour. Eskom said the amount had grown to R3.4bn in June.

City Power spokesperson Isaac Mangena said that after the initial judgment was handed down on June 20, following consultation with its legal representatives, a decision was made to file for leave to appeal against the court’s ruling.

He said it was because they believed that critical aspects of the evidence were not fully considered by the court in reaching its conclusion. 

“After our submission [on August 6] in a court hearing, judge NH Maenetje, who was presiding over the matter, said he was convinced by the arguments presented, adding that they support our contention for reasonable prospects of success in the appeal court,” he said. 

Mangena said the court also dismissed Eskom’s conditional application for City Power to go ahead and pay the amount that it claims is owed, pending the finalisation of the appeal application. 

“The judge found that Eskom would not suffer irreparable damage and said the court ruling remains suspended until the appeal court decides otherwise. Eskom was also slapped with the costs of two legal counsel,” said Mangena.

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