Eskom takes Joburg to court over R1.1 billion City Power debt
The case is scheduled for a hearing on 4 June 2024.
FILE: Eskom's Megawatt Park in Johannesburg. Picture: Eyewitness News
John Perlman interviews Kevin Allan, Managing Director at Municipal IQ.
Listen below.
Eskom has stated that it must resort to legal action against City Power in the Johannesburg High Court over R1 billion in outstanding debt.
In a press release, Eskom highlighted that City Power began defaulting on payments from October 2023, with no payment received for the March 2024 invoice.
"The debt owed by City Power has reached unprecedented levels, exacerbating Eskom’s already strained financial situation. 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 stated.
Allan observes that Johannesburg isn't the sole city grappling with debt.
In reality, municipalities collectively owe approximately R70 billion to Eskom, he points out.
Despite Tshwane being in debt to the tune of R4 billion, Allan mentions that Eskom isn't pursuing legal action against them, acknowledging Tshwane's inability to settle the debt.
The case is scheduled for a hearing on 4 June 2024.
"They [Eskom] think they can shake the money out of them by taking them to court."
- Kevin Allan, Managing Director – Municipal IQ
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