Eskom Minister of Electricity Kgosientsho Ramokgopa City of Tshwane Mayor
Electricity Minister Kgosientsho Ramokgopa and Tshwane Mayor Cilliers Brink. Image: Twitter/@tshwane_mayor

Home » Eskom owed R4.7b by City of Tshwane and Ekurhuleni

Eskom owed R4.7b by City of Tshwane and Ekurhuleni

Municipal electricity debt in Gauteng continues to increase rapidly, the City of Tshwane and Ekurhuleni owe Eskom over R4 billion.

By Nokwanda Ncwane
05-10-23 11:56
in Business and Finance
Eskom Minister of Electricity Kgosientsho Ramokgopa City of Tshwane Mayor
Electricity Minister Kgosientsho Ramokgopa and Tshwane Mayor Cilliers Brink. Image: Twitter/@tshwane_mayor

The City of Tshwane and City of Ekurhuleni jointly owe Eskom R4.7 billion as of 31 August 2023. 

This was confirmed by the power utility on Wednesday, 4 October that the municipal electricity debt in Gauteng continues to increase rapidly.

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CITY OF TSHWANE AND EKURHULENI OWE ESKOM 

Eskom said Tshwane has accumulated a debt of about R3.2 billion over July and August 2023 due to erratic payments, while Ekurhuleni’s debt is presently just under R1.5 billion, the state-owned power utility said. 

The power utility said payment patterns by both municipalities have deteriorated to concerning levels that further threaten Eskom’s liquidity, financial performance, and sustainability. 

ALSO READ: From Eskom to Rand Water – City of Tshwane ‘drowning’ in debt

“The erratic payments by the City of Tshwane dating back to 2022 are alarming. Also of serious concern is the entrenched practice by the City of Ekurhuleni of settling its account late over the past six months,” said Eskom in a statement. 

Despite all the avenues explored to recover the money, Eskom said both municipalities have failed to fully honour their payments and to comply with their electricity supply agreements.

City of Tshwane and Ekurhuleni Eskom
City of Tshwane employee disconnecting electricity during the #TshwaneYaTima campaign. Image via Twitter/@CityTshwane

RAND WATER ALSO OWED

In June this year bulk potable water supplier Rand Water said it has no choice but to pursue legal action against municipalities that owe the utility including the City of Tshwane to enforce adherence to the existing agreements to secure financial stability.

Rand Water spokesperson Makenosi Maroo said they have relentlessly attempted to resolve and accommodate non-paying municipalities and entered into bilateral agreements through intergovernmental relations forums. However, the situation has not improved and reached a deadlock.

ALSO READ: City of Tshwane owes Eskom R1.9b as it defaults on its debt

THESE ARE THE MUNICIPALITIES OWING

  • City of Tshwane
  • Emfuleni Local Municipality
  • Rand West Local Municipality
  • Merafong Local Municipality
  • Ngwathe Local Municipality
  • Govan Mbeki Local Municipality
  • Thembisile Hani Local Municipality

The municipalities altogether reportedly owe Rand Water over R4 billion.

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