South Africa: Eskom Engages Cogta On Tshwane Debt Mediation

Eskom says it has approached the Department of Cooperative Governance and Traditional Affairs (Cogta) to mediate in the debt repayment matter between the power utility and the City of Tshwane municipality.

“The Public Finance Management Act requires that institutes recover what is owed to them. It is for this reason that Eskom sought the intervention of Cogta in this matter. 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 obligations,” the power utility said.

According to Eskom, the municipality owes it some R1.6 billion for its unpaid bulk electricity supply account.

“The City of Tshwane failed to settle its account despite numerous engagements with the municipality. Tshwane’s bill as at 30 November was R1.6 billion after it failed to pay the September bill of R887 million… and it’s arrears of R699 million. The October bill of R894 billion… also remains unpaid.

“The power utility relies on municipalities and all its customers to pay their accounts timeously in order for Eskom to continue delivering on its mandate to supply electricity,” Eskom said.

Meanwhile, the power utility has begun attaching assets belonging to the Emfuleni Local Municipality after it obtained a R1.3 billion court order against the municipality for failure to pay its bulk electricity supply debt exceeding R5 billion.

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