Eskom, City Power deal could be a model to solve R370bn municipal energy debt
Eskom and City Power have reached an important agreement after months of back and forth.
FILE: Eskom's Megawatt Park in Johannesburg. Picture: Eyewitness News
Wasanga Mehana (in for Africa Melane on 702 and CapeTalk) speaks with Matthew Cruise, Energy expert at IMPOWER.
Listen below:
City Power has agreed to pay Eskom R3.2 billion, which could save Johannesburg from blackouts.
This comes after months of meter disputes, mediation, and court action.
Eskom had threatened to cut off the city over a debt of over R6 billion, which City Power disputed.
After much back and forth, they reached an agreement to pay the R3.2 billion in monthly instalments over the next four years.
Cruise says City Power will be given a break during the winter months.
“It is good to see these parties come to an agreement and there is a way forward.”
- Matthew Cruise, Energy Expert - IMPOWER
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This deal could set a precedent for dealing with South Africa’s R370 billion municipal energy debt.
“One hopes that now that the model has been created for Eskom and City Power to arbitrate and move forward, it will be rolled out quickly with other municipalities.”
- Matthew Cruise, Energy Expert - IMPOWER
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