Metro blames Eskom for slow progress on debt settling
The metro states that load-shedding has had a negative impact on residents and businesses, contributing to the City’s low revenue.
The metro has expressed frustration over Eskom’s lack of assistance regarding settling the R1.4-billion debt the City owes.
In a statement, finance MMC, Petter Sutton says that the metro is undergoing challenges with liquidity and Eskom’s persistent load-shedding does not help in generating funds to pay the money owed.
“We must acknowledge the adverse impact Eskom’s load-shedding has had on the city’s liquidity position. Our maintenance budget is spinning out of control as a direct impact of load-shedding, but Eskom refuses to take responsibility for this,” said Sutton.
The metro states that load-shedding has had a negative impact on residents and businesses, contributing to the City’s low revenue.
The MMC also cites national energy regulator of SA’s (Nersa) recent electricity tariff hike announcement as another factor adding to the metro’s inability to settle its debt.
“Eskom is proposing an 18% increase which will further cripple the financial position of the City as we will not be able to pass that increase onto end-users until July 1, 2023,” Sutton continued.
The metro states that it has been “open and honest” about its issues concerning liquidity and various interventions are being implemented to address these financial struggles.
“Our finance team has been consistently engaging with Eskom on a payment plan. As a city, we understand our responsibility to pay our creditors and it is for this reason that we continuously communicate with Eskom with a proposed payment plan to bring the account back to date.”
Sutton said that the metro intends to make regular payments to service the account, though calls on Eskom to meet them halfway.
“The Tshwane metro remains committed to paying what we owe and ensuring that we serve our Eskom accounts. However, Eskom cannot ignore its adverse contribution to some of the city’s financial liquidity problems,” Sutton concluded.
ALSO READ: Eskom asks the Tshwane metro to pay its bills – again
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
