State power utility Eskom is taking Johannesburg’s City Power to court over R1 billion unpaid debt.
Eskom said that as of March 2023, City Power’s debt has reached R1.073 billion.
The state power utility said it had no choice but to take the City Power to the Johannesburg high court over the unpaid debt.
Eskom is seeking a declaratory order that will force City Power to pay the company what it is owed.
A hearing has been set for June 4.
Eskom said the Joburg City Power started to default on their payments in October 2023 and the utility has received no payments since March 2024.
“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.
City Power has declared a dispute regarding potential over-billing on bulk purchase invoices dating back to 2021. But Eskom has denied the claims by City Power and said it will prove its position through the arbitration process.
“In terms of the electricity supply agreements sanctioned by the Electricity Regulation Act of 2006, if a municipality raises a dispute with Eskom, it must still pay. The dispute does not absolve it of its legal obligations to pay Eskom for the bulk electricity it has received,” Eskom said.
Since last year, Joburg City Power officials have been on a debt collection drive, cutting the lights at businesses and residents that owe billions in unpaid electricity bills.
One of these businesses owed over R35 million in unpaid electricity bills. The company was targeted along with seven premises around the Reuven Service Delivery Centre, which services areas such as Reuven, Braamfontein and Booysens, near the Joburg inner city.
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