- Eskom has obtained a court judgement against the City of Johannesburg (CoJ) and City Power for the payment of their R1.073 billion debt.
- The City of Johannesburg and City Power have lodged an appeal against a high court judgement.
- “The City and City Power believe that critical aspects of the evidence were not fully considered by the court in reaching its conclusion,” it said in a statement.
- The CoJ added that Eskom avoided its efforts to engage in mediation and Inter-Governmental Relations dispute resolution processes.
According to Eskom, the city and its local power utility have been defaulting on their account since October last year. “When the matter was heard on 4 June 2024, the total amount owed to Eskom by CoJ/City Power was R3.4 billion. The city in response to Eskom’s application, brought a counterclaim against Eskom for R3.4 billion alleging potential over-billing and that as a result it has applied an automatic set-off against Eskom electricity account. Furthermore, the court dismissed the counterclaim by the city with costs, consequently dismissing the automatic set-off claim”, Eskom said in a statement.
Related news: Municipalities in South Africa apply for Eskom debt write off of R56.8 billion
“Eskom has written a letter to COJ/City Power demanding payment of the full amount of R3.4 billion by 21 June 2024 and we hope they will respect the court decision and settle all outstanding debts to Eskom,” the national power utility said.
Last month, Eskom said it had been left with “no choice” but to approach the courts to have the debt paid.
“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 said.
In Eskom’s recent annual financial statement, it was reported arrear municipal debt has escalated to R70 billion. Read more
Author: Bryan Groenendaal
