Eskom has said that it has no choice but to take City Power to the Johannesburg High Court over R1 billion in debt.
According to SA News, a government news agency, Eskom is owed R4.7 billion by Gauteng municipalities.
In a statement, Eskom says City Power started defaulting on its payments in October last year.
The hearing will be held on 04 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,” Eskom said.
Johannesburg is South Africa’s economic hub.
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, it says.
Eskom adds that, in terms of the electricity supply agreements sanctioned by the Electricity Regulation Act of 2006, if a municipality raises a dispute with Eskom, it must still pay. The dispute does not absolve it of its legal obligations to pay Eskom for the bulk electricity it has received.
“Eskom remains committed to fulfilling its mandate of providing reliable and sustainable electricity to assist in growing the economy of Gauteng, making the province an investment destination of choice.”
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