Avatar photo

By Devina Haripersad

Senior Business/Finance journalist

Eskom to cut power to City of Tshwane over R1.6 billion bill

The City of Tshwane municipality is in breach of the Electricity Supply Agreement which it holds with Eskom by failing to pay the R1.6 billion.

In a bold and desperate move, Eskom announced that is formally considering disconnecting the City of Tshwane as one of the necessary steps to secure the outstanding payment.

In a statement released by the power giant earlier today, it was confirmed that the City of Tshwane municipality 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.

ALSO READ: SA can’t rely on single state utility any longer, says Eskom board member amid load shedding

According to Eskom, the City only paid R68 million to date, which did little to dent the massive outstanding balance on its electricity account.

The power utility had numerous engagements with the City of Tshwane’s management to ensure that the City pays its account.

Eskom confirmed that these actions have not yielded any results as the City has continued with the same pattern.

NOW READ: Load shedding: A step-by-step plan for ditching Eskom and going off grid

“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,” the statement from Eskom read.

Eskom 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.

Read more on these topics

Eskom Rolling blackouts Tshwane

Access premium news and stories

Access to the top content, vouchers and other member only benefits