Eskom bills Tshwane another R1.6 billion on top of millions already owed
“We believe Eskom has an agreement with Tshwane, which requires that in circumstances where it has been breached, Eskom has the right to implement credit control measures in line with Public Finance Management Act.”
It seems the Tshwane metro’s debt to Eskom is mounting as Eskom recently invoiced Tshwane another R1.6-billion for August’s electricity consumption.
This while Tshwane still owed an outstanding balance of R830-million for July, which is due on Friday.
The recent R1.6-billion bill has arrived at a time when Eskom is considering disconnecting the electricity supply to Tshwane for failing to settle its debt on time.
The Eskom Gauteng media team said that as of September 7, Tshwane had paid R788-million of the R1.6-billion July debt, which was due on August 17.
It said R830-million was still outstanding for July.
“Eskom has also invoiced Tshwane R1.6-billion for August consumption, which is due and payable on September 16,” Eskom said.
Tshwane has been financially strained and has been making daily payments to Eskom.
The metro last month collected over R700-million in electricity revenue in a bid to pay its outstanding debt to Eskom by September 16.
Eskom said the disconnection would be implemented after it had considered public opinion.
It said it would give members of the public and any stakeholders that might be affected by the supply interruption, the opportunity to make submissions with motivation for or against the intervention.
The utility said it would then consider all the submissions before it decided whether to switch off Tshwane.
“Eskom is closely monitoring all metro and municipality accounts, and follows a strict debt collection process should they not settle their bills on time.
“Eskom is on record having communicated about other municipalities’ debt including the City of Ekurhuleni and the Emfuleni municipality. The same process will be adopted with other defaulting municipalities,” Eskom said.
Earlier this year, Eskom published Ekurhuleni metro’s R544-million debt and did the same with Emfuleni municipality.
Eskom recommended that aggrieved businesses and residents threatening to sue Eskom take matters up with Tshwane.
“We believe Eskom has an agreement with Tshwane, which requires that in circumstances where it has been breached, Eskom has the right to implement credit control measures in line with Public Finance Management Act.”
“Tshwane’s customers need to address their concerns with Tshwane for failing to pay.”
The Tshwane metro’s problems with Eskom started in January when it did not pay its R635-million bill on time, and R878-million for July. It was the same for August, with a higher bill.
Since the failure to reach a payment agreement, MMC for Finance Peter Sutton said disconnecting the metro would be unlawful and there is already legal precedent indicating such.
“Should any such action be pursued, the metro will immediately interdict Eskom from proceeding.”
Metro spokesperson Sipho Stuurman said it had collected R548-million from post-paid customers and R153-million from prepaid customers.
Stuurman said the revenue collected would cover some of its debt to Eskom, which had threatened to disconnect the metro, home to several national and provincial departments.
Tshwane plans to settle its July debt by September 16 by making two payments of about R550-million and R620-million as cash flows into the metro’s coffers from government departments, residents and businesses that paid.
He said strong revenue collection efforts were being imposed particularly on government consumers and businesses to allow Tshwane the opportunity to pay Eskom much earlier than proposed.
Stuurman said the metro was committed to paying Eskom but was, however, worried by Eskom’s hostile attitude and threats.
“We have continuously committed to ensuring regular payment of our bills. Despite meeting with the top level executive management of Eskom, they have continued to try and threaten the city with disconnection, which they cannot do lawfully.”
An organisation for independent businesses recently demanded that Eskom halt its threats to cut off power to the metro as that would penalise paying residents.
Sakeliga, through its attorneys, Kriek Wassenaar & Venter Ingelyf earlier this month, said it was aware that Eskom was threatening to terminate the electricity supply to Tshwane.
“The intended action by Eskom is, in our client’s view, unconstitutional and in breach of the electricity regulation act of 2006.”
“Eskom’s attempt to cease the supply of electricity to the metro will lead to urgent litigation,” it warned.
Sakeliga said Eskom’s threats were “irrational” as there were businesses up-to-date with payments for electricity services in Tshwane.
“We struggle to see how the termination of bulk supply of electricity to paying end-users residing in one of Eskom’s largest supply markets in the country will improve its financial position.”
Eskom said it was also reviewing the details of the letter sent by Sakeliga.
- READ MORE: Kosmosdal substation upgrade has benefitted the community
- Metro completes upgrades at Kosmosdal substation
Do you have more information about the story?
Please send us an email to editorial@rekord.co.za or phone us on 083 625 4114.
For free breaking and community news, visit Rekord’s websites: Rekord East
For more news and interesting articles, like Rekord on Facebook, follow us on Twitter or Instagram
