POWER utility Eskom says it is considering disconnecting the City of Tshwane as one of the necessary steps to secure outstanding payments.
The utility said that the City of Tshwane is in breach of the Electricity Supply Agreement which it holds with Eskom by failing to pay the R1.6 billion which was due and payable on 17 August 2022.
“The city only paid R68 million to date, which did little to dent the massive outstanding balance on its electricity account,” Eskom said.
The power utility said it had numerous engagements with the city’s management to ensure that it pays its account; however, these actions have not yielded any results as the city has continued with the same pattern, Eskom said.
“The inconsistent payments are both untenable and unacceptable since Eskom’s financial position is well known. The city’s persistent failure to honour its payments places a huge burden on Eskom to continue providing it with electricity.”
Eskom said it will continue to apply different approaches to recover money owed to it and has acquainted the MEC of Cooperative Governance and Traditional Affairs of the risks associated with the late payment of the City of Tshwane’s electricity account.
The latest threat from Eskom follows one made in July when the power utility rejected the City of Tshwane’s proposed payment plan to settle almost R900 million in debt. The city eventually paid the amount owed by reprioritising its budget.
Eskom has been clamping down on municipalities that owe it money, with its municipal debts sitting at over R45 billion.
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