Eskom has reached an agreement with the City of Ekurhuleni on a payment plan to settle arrear debt, avoiding potential interruption of bulk electricity supply.
The agreement, which will be made an order of court, brings an end to active litigation between Ekurhuleni and Eskom related to the threatened supply interruption.
The development follows a Promotion of Administrative Justice Act notice issued by Eskom on March 5 in which the utility indicated its intention to begin interrupting bulk electricity supply to municipalities in arrears.
Eskom said Ekurhuleni has committed to honouring the payment arrangement and to meeting current electricity account obligations as they fall due.
Municipal arrears to Eskom are estimated to be around R110 billion with dozens of municipalities in default or struggling to meet payment obligations.
The utility confirmed receipt of a R1,7 billion payment from Ekurhuleni this month, representing half of the R3,4 billion owed. The remaining balance will be settled over a period of 18 months.
As a result of the agreement, Eskom confirmed that there is no immediate risk of bulk electricity supply being interrupted for residents and businesses in Ekurhuleni
