Energy Central News

Curated power industry news from thousands of top sources.

News

Tshwane metro in R635 million arrears with Eskom

  • Jan 28, 2022
  • 110 views
Source: 
Rekord Moot

The Tshwane metro owes Eskom R635 million for electricity services provided by the company.

This was according to a statement released by Eskom on Thursday, stating that the R635 million owed by the metro was due by January 18, 2022, but that this has not been done.

“The City of Tshwane’s payment patterns have been irregular over the past six months,” the statement read.

“This has contributed negatively to Eskom’s increasing overdue debt, which is more than R43.8 billion.

“Over the past months, we have engaged the City on these irregular payments and the impact they have on Eskom to keep the lights on.”

The power company said it met with mayor Randall Williams and his team on Tuesday, January 25, as part of an effort to recover the money.

The cash-strapped Eskom said the overdue debt has contributed negatively to the liquidity, financial performance and sustainability of the organisation, where Eskom has to borrow to meet its financial commitments.

“As a utility, we are obliged to operate this business sustainably and to consequently take all the appropriate measures to recover money owed to us,” the statement further explained.

“We have initiated the intergovernmental framework, Promotion of Administrative Justice Act and the engagement of the relevant stakeholders to put an end to the increasing debt.”

In December 2020, the metro’s accounts with Eskom were up to date with the hope that the municipality would be part of the local government entities that could generate their own electricity or appoint independent producers.

The power utility said it remained hopeful that the metro would review its current position regarding the appeals made to them by Eskom and honour their payments.

The Tshwane metro was yet to comment at the time of publishing.

Discussions
Spell checking: Press the CTRL or COMMAND key then click on the underlined misspelled word.

No discussions yet. Start a discussion below.

Get Published - Build a Following

The Energy Central Power Industry Network is based on one core idea - power industry professionals helping each other and advancing the industry by sharing and learning from each other.

If you have an experience or insight to share or have learned something from a conference or seminar, your peers and colleagues on Energy Central want to hear about it. It's also easy to share a link to an article you've liked or an industry resource that you think would be helpful.

                 Learn more about posting on Energy Central »