The City of Tshwane have agreed to a payment plan with Eskom in order to settle their R6 billion debt. Picture: Independent Newspapers
Image: Picture: Independent Newspapers
Residents in the City of Tshwane can sleep a little easier during the festive season following a payment arrangement, signed by Eskom and city authorities, to settle its R6 billion debt.
Eskom noted that the City of Tshwane owes the state utility R6.6 billion for bulk electricity supply.
The two parties were set to fight in court but have now agreed to a five-year payment arrangement plan.
“In terms of the payment arrangement plan, the City of Tshwane has committed to make the initial payment of R400 million in December 2024, with the last payment scheduled for March 2029,” Eskom said in a statement.
The utility said that all current accounts must be paid in full on or before their due dates (the end of the month).
Eskom warned that if the City of Tshwane defaults on the payment arrangement and the current accounts, the new arrangement will be terminated, and the full amount owing will become due and payable to Eskom immediately.
Monde Bala, Eskom Group Executive, Distribution said that the utility was pleased to have worked collaboratively with the City of Tshwane to reach this outcome.
“This agreement plays a part in maintaining the sustainability of Eskom to drive the economic growth of South Africa and reduce our burden on the taxpayer,” Bala noted.
Last week, Eskom issued a disconnection notice for bulk electricity supply to Tokologo Local Municipality in the Free State.
The municipality has not paid Eskom over R300 million to the utility.
“Should Eskom proceed with the disconnection, bulk electricity supply to Boshof, Seretse, Dealesville, and Hertzogville will be interrupted daily from January 2025 for a set number of hours per day,” Eskom said.
The utility said that the municipality owes them R328 million for the bulk supply of electricity.
IOL BUSINESS