The City of Tshwane (CoT) has failed to honour its August invoice of R1,6 billion paying only R492 million of the bill due and payable on 16 September 2022.
In a media statement, Eskom rejected the municipality’s proposed payment arrangement in a meeting held with the City’s management team on Friday, 30 September 2022. The power utility advised the city to settle the balance of R1,1 billion by close of business on Friday, 30 September 2022.
Eskom further said the meeting on Friday is one of the numerous engagements Eskom has held with the City in an attempt to secure payment for the debt owed by the municipality.
Eskom reported in the past that it would continue to implement different methods to recover money owed to it and has acquainted National Treasury to facilitate the dispute it has declared to attain a resolution to the municipality’s inconsistent payment pattern.
The municipality’s erratic payment pattern is in breach of the electricity supply agreement (ESA) it holds with Eskom, and it has a devastating impact on the power utility’s cash flow.
The City’s partial payment of its account exposes Eskom to severe financial risk and its ability to supply electricity to customers due to under-recovery.
