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Thursday, 20 June 2024 20:19

Court orders City of Joburg, City Power to pay R1.073bn Eskom debt.

By Lehlohonolo Lehana.

State owned power utility Eskom has obtained a court order against the City of Johannesburg and its subsidiary, City Power demanding that the city pay over R1.073 billion in owed debt.

The bill in question includes three charges — R105 million, R184 million, and R197 million — totalling R486 million.

City Power also still owes Eskom R336 million for an invoice from 29 March, R19.6 million for an invoice dated 30 March, and R57 million for an invoice from 31 March.

Altogether, the amounts owed for the four invoices total R908 million.

To clarify, there are more amounts owed to Eskom than just those listed in the four March invoices. Eskom says City Power owes it R1.073 billion, which has since ballooned to R3.4 billion..

Eskom said City Power has been rolling its electricity debt since October 2023.

In a statement, the power utility said, when the matter was heard on 4 June 2024, the total amount owed to Eskom by CoJ/CP was R3.4 billion."

The court dismissed the counterclaim with costs, Eskom said, dismissing the city's set-off against Eskom.

"Eskom has written a letter to COJ/CP demanding payment of the full amount of R3.4 billion, and we hope they will respect the court decision and settle all outstanding debts to Eskom," the utility said.

Eskom has given COJ/CP to pay full amount by 21 June 2024

Meanwhile after a lengthy appeals and consultation process, environmental affairs minister Barbara Creecy has decided to grant Eskom's request for the suspension of minimum emissions standards (MES) limits at some of its older power stations.

"This allows these stations (Hendrina, Grootvlei, Arnot, Camden and Kriel) to continue to operate at existing MES plant limits until March 31 2030," Eskom said.