Eskom secures court order against City of Joburg, demands payment of over R3.4 billion
Eskom secures court order against City of Joburg, demands payment of over R3.4 billion
Eskom stated that it obtained a court order on Thursday against the City of Joburg, demanding that the municipality settle its debt of over R1 billion, which has escalated to R3.4 billion due to interest.
“Eskom has written a letter to City of Joburg and City Power demanding payment of the full amount of R3.4 billion by June 21, 2024 and we hope they will respect the court decision and settle all outstanding debts to Eskom,” the utility said in a statement.
When the matter was heard, the municipality brought a counterclaim against the power utility for R3.4 billion, alleging potential over-billing. As a result, it applied for an automatic set-off against Eskom’s electricity account.
However, the court dismissed the municipality’s counterclaim with costs.
Eskom said the Joburg City Power started to default on their payments in October 2023 and the utility has received no payments since March 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.
Since last year, Joburg City Power officials have been on a debt collection drive, disconnecting electricity at businesses and residences that owe billions in unpaid electricity bills.
IOL News