By: Lethabo Mathole
Eskom has taken legal action by applying to the Johannesburg High Court in an attempt to compel Johannesburg’s City Power to settle its outstanding debt. As of March 31, the debt amounted to R1 billion.
The utility said it has been “left with no choice” but to apply to the high court for a
declaratory order to force City Power to pay up. According to Eskom City Power started defaulting on its payments in October, and no payment was received for March.
The case against City Power has been enrolled for 4 June, Eskom said in a statement on Monday. It said City Power started defaulting on its payments in October 2023, and no payment was received for the March 2024 invoice. “The debt owed by City Power has reached unprecedented levels, exacerbating
Eskom’s already-strained financial situation,” Eskom said.
“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 added.
Eskom further explained that over and above, 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. Eskom said that the Electricity Regulation Act of 2006 states that if a municipality raises a dispute with Eskom, it must still pay.
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