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Eskom drags City Power to court over escalating R1 billion debt

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Eskom has approached the Johannesburg High Court to force City Power to pay its escalating R1 billion debt.

Eskom has applied to the Gauteng High Court in Johannesburg for a declaratory order to force City Power to pay its R1 billion debt.

Eskom said City Power owes R1 073 billion and started to default on its payments in October 2023. Furthermore, the national power supplier did not receive payment for March 2024. Qithi said in terms of the Electricity Regulation Act of 2006, if a municipality raises a dispute with Eskom, it must still pay. So, City Power is still liable for settling its debt as it had already received bulk electricity from Eskom.

During his speech, Godongwana said by October 2023, 67 applications had been submitted, totalling R56.8 billion or 97% of the total municipal debt owed to Eskom in end-March 2023.

 

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