Eskom threatens to cut electricity to City of Tshwane

Eskom says it is considering disconnecting the City of Tshwane as one of the necessary steps to secure an outstanding payment of over R1.5 billion.

The power utility indicated in a statement issued on Tuesday, that the city is in breach of the Electricity Supply Agreement and has failed to pay R1.6 billion, which was due on 17 August.

“The city has only paid R68 million to date, which did little to dent the massive outstanding balance on its electricity account.”

Eskom says numerous engagements with the City of Tshwane’s management to ensure payment have not yielded any results as the city has continued with the same pattern.

“The inconsistent payments are both untenable and unacceptable since Eskom’s financial position is well known. The city’s persistent failure to honour its payments places a huge burden on Eskom to continue providing it with electricity.”

Eskom indicated that it will continue to apply different approaches to recover money owed to it and has informed the MEC of Cooperative Governance and Traditional Affairs, Lebogang Maile, about the risks associated with the late payment of the City of Tshwane’s electricity account.

Nondumiso Lehutso is a Moneyweb intern.