Eskom is suing City Power for failing to pay R1 billion. (William Horn/Netwerk24)
- Eskom is suing Johannesburg City Power for failing to pay more than R1 billion worth of electricity bills.
- The company claims that its financial stability and infrastructure maintenance are at risk due to non-payments.
- The lawsuit asks City Power to pay R1.07 billion and provide monthly financial statements.
Eskom is suing Johannesburg power company City Power for failing to pay more than R1 billion.
The power company said in a statement on Monday that it had no choice but to take the case to the Johannesburg High Court to force City Power to pay.
Eskom said the non-payment had undermined the utility's financial stability and ability to maintain critical infrastructure. It also affected Eskom's ability to invest in new technology and meet the state's growing energy needs.
”[City Power] defaulted on payments starting in October 2023, and no payments were made on the March 2024 invoice. “City Power's debt has reached unprecedented levels, further deteriorating Eskom's already strained financial position,” Eskom said.
The newspaper said City Power had declared a dispute over possible overcharging on bulk purchase invoices dating back to 2021.
“Eskom denies City Power's allegations and will prove its position through the arbitration process.”
Eskom added that according to the Electricity Regulation Act 2006, municipalities still have to pay utility bills even if they dispute the amount owed.
“This dispute does not relieve Eskom of its legal obligation to pay Eskom for the bulk electricity it receives,” Eskom said.
According to court documents, Eskom is seeking a payment of R1 073 593 894.38.
It also called on the South African National Energy Regulator (Nersa) to investigate, consult and identify corrective measures to overcome Eskom's failure to pay for municipal electricity and bulk electricity supplied by the city. .
Eskom also requested that, until corrective action is taken by Nersa, the city authority or city submits to Eskom and the Registrar a signed statement on the 14th of each month reflecting the following:
- Amount of electricity sold in the previous month.
- Last month's income earned from selling electricity.
- Expenses incurred in the previous month related to electricity business.and
- Revenue less expenses incurred by City Power's electricity operations and/or the city's electricity operations.
Eskom is also requesting that either City Electricity or the City cover the application costs.
This issue is set for June 4th.
