Eskom takes City Power to court over R1 billion debt
Eskom has asked the High Court to compel Johannesburg’s energy utility, City Power, to pay R1.07 billion it owes South Africa’s state-owned power company, it said in a statement on X.
“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,” it said
“The power utility started to default on its payments from October 2023, and no payment was received for the March 2024 invoice,” Eskom said.
“The debt owed by City Power has reached unprecedented levels, exacerbating Eskom’s already strained financial situation.”
It added that the situation threatens its financial stability and its ability to maintain critical infrastructure, invest in new technologies, and meet Johannesburg’s growing electricity demands.
In an attempt to defend its debt, City Power declared a dispute against Eskom for allegedly overbilling the municipal power utility on bulk purchases dating back to 2021.
“Eskom denies the claims made by City Power and will prove its position through the arbitration process,” Eskom said.
“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 case will be heard on June 4.
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