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Eskom has threatened to cut power to Johannesburg over a R5,2bn debt it said it is owed by City Power.
In a letter to city manager Floyd Brink, which Sowetan has seen, Eskom said Joburg continued to owe despite a court-ordered settlement agreement regulating the repayment of the debt and current electricity usage.
[Joburg and City Power have] failed to honour the terms of the court order.
— Eskom
“Despite the existence of the aforementioned court order and the indulgence granted by Eskom through the repayment arrangement, COJ/CP [City of Johannesburg/City Power] has failed to honour the terms of the court order by failing to make payment of both the historical debt instalments and the current electricity account on the due dates,” the letter reads
In June last year, Sowetan’s sister publication Business Day reported that City Power and Eskom had reached a settlement of R3,2bn over the bill. At the time, Eskom had threatened to cut supply to the city over the R4,9bn it said it was owed.
At the time, electricity minister Kgosientsho Ramokgopa intervened, and City Power agreed to pay R1,4bn to Eskom.
But Eskom‘s letter said as a result of the city’s failure to comply with the conditions of the court order, the debt was increasing, placing enormous strain on the utility’s cash flow.
Should the electricity supply be disconnected, Eskom said the city will be required to pay the full outstanding amount, including interest; pay a reconnection fee and, if applicable, a new connection charge; and provide updated security for the account before the electricity supply is reconnected.
READ| Eskom unburdening its debt on citizens: experts
The power utility said it would follow the provisions of the Administrative Justice Act to inform the affected parties of the planned cut-off scheduled for July 8.
It will also allow affected residents of the city to make a representation or submission on why the bulk electricity supply must not be disconnected.
City Power spokesperson Isaac Mangena said the utility was aware of the outstanding debts, which were raised with Eskom in the intergovernmental relations forum meetings.
“I know that we have been paying through city finance, and the arrears should be reduced from where they were. The city is best positioned to respond to the said letter and alleged threats by Eskom,” Mangena said.
Sowetan
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