The City of Johannesburg has paid R4,3 billion towards its outstanding electricity debt to Eskom.
The payment follows Eskom’s warning in May that it could interrupt electricity supply to certain bulk supply points after the city’s arrears exceeded R5,2 billion.
It also follows an intervention announced in June by Minister of Electricity and Energy Kgosientsho Ramokgopa and Johannesburg Executive Mayor Dada Morero. At the time, the parties agreed on a recovery plan that included establishing ring-fenced electricity revenue accounts as well as implementing revenue collection and infrastructure reforms to address City Power’s debt to Eskom.
According to Eskom, Johannesburg has now paid R4,3 billion towards the accumulated overdue debt. However, the account has not yet been fully settled. As of July 24, the overdue balance stood at R3,8 billion comprising an overdue current account and an outstanding balance under a High Court-ordered settlement arrangement.
The current electricity account of R2,64 billion is due on August 3.
While acknowledging the payments received, Eskom said the city remains obliged to comply with the court-ordered settlement agreement and pay all current accounts on time.
The utility has extended the Promotion of Administrative Justice Act consultation process to August 22 while it assesses public submissions and monitors the city’s compliance with its payment commitments.
