Eskom Wants City Of Tshwane To Pay Overdue R635 Million Bill

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Debt burdened Eskom is leaning on the City of Tshwane to settle its outstanding electricity bill of R635 million, which was due and payable by Tuesday last week.

“The City of Tshwane’s payment patterns have been irregular over the past six months and have contributed negatively to Eskom’s increasing overdue debt which is in excess of R43.8 billion,” said Eskom Thursday.

Most of Tshwane’s electricity comes from Eskom.

The Eskom Gauteng Operating Unit said it met with the City of Tshwane Mayor Randall Williams and his team on Tuesday, 25 January 2022, to press them to settle the outstanding bill.

Eskom said the meeting was part of the utility’s efforts to recover the debt owed to it by the City.

“Over the past months, we have engaged the City on these irregular payments and the impact they have on Eskom to keep the lights on,” said the power utility.

Eskom said the overdue debt has contributed negatively to the liquidity, financial performance, and sustainability of the organisation, where it has to borrow to meet its financial commitments.

“As a utility, we are obliged to operate this business in a sustainable manner, and to consequently take all the appropriate measures to recover money owed to us,” said the cash-strapped power utility.

“We have initiated the intergovernmental framework, Promotion of Administrative Justice Act, and the engagement of the relevant stakeholders to put an end to the increasing debt.

“We remain hopeful that the City will review its current position regarding the appeals made to them by Eskom and honour their payments.”

Last week the City of Tshwane rejected what it said was “excessive tariff price hikes proposed by Eskom”.