Eskom has applied to the Gauteng High Court in Johannesburg for a declaratory order to force City Power to pay its R1 billion debt.
City Power, which supplies residents under the City of Johannesburg Metropolitan Municipality, is defaulting on its payments. On Monday, 6 May, Eskom said the matter is enrolled and will be heard at the Gauteng High Court in Johannesburg on 4 June.
Eskom said City Power owes R1 073 billion and started to default on its payments in October 2023. Furthermore, the national power supplier did not receive payment for March 2024.
“The debt owed by City Power has reached unprecedented levels, exacerbating Eskom’s already strained financial situation. The dire situation undermines Eskom’s financial stability and threatens its ability to maintain essential infrastructure, invest in new technologies, and meet the growing energy demands of the province,” Eskom Gauteng spokesperson Amanda Qithi said. In addition, Eskom said City Power declared a dispute regarding potential overbilling on bulk purchase invoices dating to 2021.
Qithi said in terms of the Electricity Regulation Act of 2006, if a municipality raises a dispute with Eskom, it must still pay. So, City Power is still liable for settling its debt as it had already received bulk electricity from Eskom.
Source: eNCA
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