City of Tshwane continues to drown in debt – owes Eskom R4bn

Eskom says the impact on its financial stability is exarcebated by the City of Tshwane’s accumulation of unpaid bills and City of Ekurhuleni’s late payments.

This comes as the City of Tshwane admitted earlier this year that it does not have enough money to pay its Eskom debt.

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ESKOM BLASTS CITY OF TSHWANE

In a statement, Eskom said the escalating electricity debt owed by Gauteng municipalities poses a challenge adding that the debt does not only strain the power utility’s financial stability but also threatens the reliability of electricity supply across the province.

According to the power utility, the City of Tshwane has outsanding bills amounting to R3.1 billion for August, September and October 2023 with a total debt of R4.2 billion and a current account of R1.1 billlion that is due on 28 December 2023.

“All municipalities are urged to prioritise settling current accounts and outstanding electricity payments to Eskom,” the power utility said.

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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.