Johannesburg - City Power on Thursday denied it was in arrears with Eskom, despite an announcement by Minister of Co-operative Governance Pravin Gordhan that at the end of June, it was the parastatal’s biggest debtor - owing R1.075 billion.
Gordhan was replying to a parliamentary question from IFP MP Mkhuleko Hlengwa. He said the total debt owed by municipalities had trebled to R10.8bn in nine months.
City Power managing director Sicelo Xulu said the claim was incorrect, disingenuous and misleading. “City Power… purchases electricity from Eskom, which it on-sells to its customers across Joburg. The utility makes its monthly payments to Eskom on time every month. We are engaging with the authorities to ensure they have correct records on this matter.”
He said City Power had always enjoyed a constructive and professional relationship with Eskom.
Speaking at a media conference on Thursday, Steve Lennon, Eskom’s group executive for sustainability, said the parastatal had had meetings with the government and he was sure the arrears would be sorted out.
Lennon said Eskom was owed R8bn in debt arrears and R3bn in outstanding debt, adding that the parastatal was receiving support at both local and national level.