Staff Reporter.
State owned power utility Eskom says it has “no choice” but to approach the Johannesburg High Court to force City Power to pay just over R1-billion in unpaid debt.
Eskom noted that City Power began to default on payments in October 2023 and that it did not receive any payment for March, this year.
The case has been enrolled for hearing on 4 June 2024.
“The debt owed by City Power has reached unprecedented levels, exacerbating Eskom’s already strained financial situation.”
“This dire situation not only undermines Eskom’s financial sustainability but also threatens its ability to maintain essential infrastructure, invest in new technologies and meet the growing energy demands of the province.”
On the other hand, City Power declared a dispute regarding potential overbilling on bulk purchase invoices dating back to 2021, which Eskom denies and claims it will provide through the arbitration process.
Eskom said that the Electricity Regulation Act of 2006 states that if a municipality raises a dispute with Eskom, it must still pay.
“The dispute does not absolve it (City Power) of its legal obligations to pay Eskom for the bulk electricity it has received.”
Eskom’s financial situation has been heavily affected by the non-payment of municipalities in South Africa, with municipal debt standing at R70 billion nationwide in December 2023.
Compiled by Lehlohonolo Lehana.