Tshwane metro assets could be seized to pay its Eskom debt
This fate recently befell Emfuleni after its assets were “attached” after Eskom obtained a R1.3-billion judgement against the municipality.
Tshwane metro assets could be seized to pay its Eskom debt.
This was after the electricity provider said it would follow a strict debt collection process should municipalities not settle their bills on time.
This fate recently befell Emfuleni when Eskom obtained a R1.3-billion judgement to “attach” municipality’s assets to offset arrears.
Currently, Tshwane has been entangled in a mediation process led by Cogta to straighten out the matter.
Eskom Gauteng spokesperson Amanda Qithi said the metro owed Eskom R1.6-billion as of January 6, including R889-million carried from the November 2022 invoice, which was due on December 17, 2022, and R780-million for December 2022, payable on January 18.
Qithi said Eskom relied on its clients to pay their accounts.
“It hinders our ability to supply electricity to customers.”
At end of November 2022, municipalities nationwide owed Eskom a total of R56-billion.
She said “Eskom will explore all avenues available” to collect on debt.
Last year, Eskom threatened to disconnect Tshwane once it had considered public submissions with motivation for or against such step.
It said it would consider all the submissions before it decided whether to switch off Tshwane or not.
#EskomGauteng#EmfuleniAssetsAttached
We are attaching the Emfuleni Local Municipality’s assets after obtaining a R1.3 billion judgement against the municipality. pic.twitter.com/7jj3W6BqqI
— Eskom Hld SOC Ltd (@Eskom_SA) December 1, 2022
#EskomGauteng #EmfuleniAssetsAttached
Emfuleni municipality’s tipper removed from the munic’s offices. pic.twitter.com/s7MrY0GMGt
— Eskom Hld SOC Ltd (@Eskom_SA) December 1, 2022
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“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.
In December, Eskom said that it had shown an improvement in financial performance, but continued poor plant performance and high debt levels were still worrisome.
“2022 was a tremendously difficult one for us. Not all our priorities as outlined in our turnaround plan could be achieved,” said Eskom CEO André de Ruyter.
His CFO Calib Cassim said the utility had received R31.7-billion equity support from the government in 2022.
“Eskom’s liquidity, however, remains constrained because of unsustainably high debt servicing costs,” said Cassim.
He said municipal and household debt remained a problem, with municipal arrear debt escalating by R9.5-billion year-on-year.
“The overdue debt by municipalities must be resolved.”
Tshwane has yet to comment to a Rekord enquiry.
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