Eskom claims Tshwane owes R1.6 mil but City refutes this

The City of Tshwane claims Eskom is not telling the entire truth as the municipality has been making daily payments.

Oct 1, 2022 - 06:03
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Eskom claims Tshwane owes R1.6 mil but City refutes this

Eskom has come out against the City of Tshwane for failing to honour its August invoice of R1.6 billion for its electricity bill.

POWER UTILITY REJECTS TSHWANE’S PROPOSED PAYMENT PLAN

Tshwane has only paid R492 million of the bill which was due on 16 September, Eskom said.

“Eskom rejected the municipality’s proposed payment arrangement in a meeting held with the city’s management team on Friday, 30 September. The power utility advised the municipality to settle the balance of R1.1 billion by close of business on Friday.”

Eskom

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The power utility has involved the National Treasury to facilitate what it says is the municipality’s inconsistent payment pattern.

“The municipality’s erratic payment pattern is in breach of the electricity supply agreement (ESA) it holds with Eskom. It has a devastating impact on the power utility’s cash flow.”

This partial debt puts Eskom at serious financial risk and its ability to supply electricity to customers, the power utility said.

MUNICIPALITY REFUTES CLAIMS THAT ITS ACCOUNT IS IN ARREARS

But by close of business on Friday, the City of Tshwane instead refuted the claims of owing R1.6 billion.

Spokesperson Lindela Mashigo says the city is committed to honouring payments to its creditors including Eskom.

“To display our obligation, the city paid nearly R500 million towards the arrears in question, therefore, the amount due is R1.1 billion, and not the bandied R1.6 billion figure.”

Lindela Mashigo

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The city has instead been making daily payments to Eskom to reduce the current debt. This is despite the financial difficulties the city finds itself, said Mashigo.

“Furthermore, the city has again submitted a payment arrangement which is a standard practice in municipal affairs,” said Mashigo.

CITY HAS DEFAULTING CUSTOMERS TOO

While the City owes Eskom for electricity, residents and customers also defaulted on their payment arrangements towards their municipal accounts.

Tshwane
The City of Tshwane says it also needs its customers to pay their arrear accounts to aid in paying Eskom. PHOTO: Twitter/@Our_DA

Tshwane has undertaken a vigorous #TshwaneYaTima campaign which goes after defaulting customers to disconnect their services.

“While the city continues to prioritise payments to Eskom, as a significant player in service delivery to the residents of Tshwane, the municipality urges customers to pay their accounts in full and on time, to enable it to pay Eskom in good time,” said Mashigo.

ALSO READ: Tshwane targets estates to disconnect those with outstanding bills