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Eskom Warns – Tshwane Debt Worsening

Published

6 months ago

November 6, 2023

Tshwane’s electricity debt is growing worse, according to Eskom. The national power utility says it is pursuing legal processes intended to recover the overdue debt from Tshwane. This announcement follows Emfuleni municipality having their assets attached by Eskom after a court judgment in 2022.

Tshwane’s electricity debt ballooned to R3.8 billion recently despite mayor Cilliers Brink proclaiming during his maiden State of the Capital address in May that he planned on achieving a revenue collection rate of at least 93% and disconnecting 1,000 delinquent customers every week to regain financial control.

The debt has increased by approximately R600 million since August 31, which has left Eskom fuming.

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Eskom Gauteng communication and stakeholder relations (CPRP) Ronel Kotze said: “Tshwane’s overdue debt increased to R3.8-billion because it had yet to settle invoices for July, August, and September.”

She said the metro’s payment patterns had drastically deteriorated, which raised concern as the debt further threatened Eskom’s liquidity, financial performance, and sustainability.

Tshwane could potentially have its assets seized to pay Eskom after a similar fate befell Emfuleni when the utility obtained an R1.3-billion judgment to “attach” that municipality’s assets to offset arrears.

Eskom had followed a strict debt collection process as the municipality could not settle its bills on time.

Since September 19, there have not been payments for 114,000 accounts for water and electricity in the economically depressed metro.

Source: Tshwane debt is growing worse – Eskom

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