Tshwane — Eskom and the City of Tshwane have reached a payment arrangement plan to settle its outstanding debt of more than R6 billion owed to the power utility.
In a statement, Eskom revealed that the City of Tshwane owes R6 661 123 246 to them. The power utility had taken Tshwane to court over bulk electricity supply arrear debt and the matter was set down for hearing on 26 and 27 November.
The two parties met and agreed to a five-year payment plan, which was made by an order of the court on 26 November 2024. The payment arrangement plan included the City of Tshwane’s commitment to make the initial payment of R400 million in December 2024, with the final payment set for March 2029.
The payment arrangement plan is subject to the following conditions:
• All current accounts must be paid in full on or before their due dates (30 days),
• If the City of Tshwane defaults on the payment arrangement and the current accounts, the payment arrangement shall be terminated, and the full amount owing will become due and payable to Eskom immediately.
The City of Tshwane has reached a landmark agreement with Eskom to settle the R6.67 billion historical debt owed to the utility. This agreement, formalised as a court order on 26 November 2024, is a significant milestone in our journey to financial recovery and stability.… pic.twitter.com/n1sNvMTuOk
— Dr Nasiphi Moya (@nasiphim) December 2, 2024
Eskom Group Executive, Monde Bala, was happy the two parties could work together to reach an agreement.
“This agreement plays a part in maintaining the sustainability of Eskom to drive the economic growth of South Africa and reduce our burden on the taxpayer,” he continued,” Bala said.
City of Tshwane mayor, Nasiphi Moya, said her office inherited outstanding debts to Eskom that had grown to more than R7 billion.
“This placed immense strain on the city’s financial sustainability as we have struggled to meet our current obligations to Eskom while trying to reduce the debt and pay the interest that was accrued,” Moya said.
“Today, I am pleased to announce that the City of Tshwane has reached a landmark agreement with Eskom to settle this issue. This agreement, formalised as a court order, is a significant milestone in our journey to financial recovery and stability,” she added.
WATCH BELOW:
📹 WATCH: “I am pleased to announce that the City has reached a landmark agreement with Eskom to settle this issue [Eskom debt].”
Tshwane Mayor Dr. @NasiphiM provides updates on key issues critical to the City’s recovery, including the Eskom debt.#LetsFixTshwane 🛠️💚 pic.twitter.com/x86o7l6ADW
— ActionSA (@Action4SA) December 2, 2024
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Compiled by Matthew Petersen
