Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News

      Telkom warns Icasa call rate cuts will punish smaller players

      13 June 2024

      MultiChoice will ride out Nigeria chaos

      13 June 2024

      Showmax reports R2.6-billion in trading losses

      13 June 2024

      Big section of 2Africa subsea cable is now live

      12 June 2024

      MultiChoice sheds 9% of its subscriber base in 12 months

      12 June 2024
    • World

      SpaceX sued by engineers fired after accusing Elon Musk of sexism

      13 June 2024

      Elon Musk withdraws lawsuit against OpenAI

      12 June 2024

      Investors cheer Apple AI strategy

      12 June 2024

      High-fidelity audio is finally coming to Spotify

      11 June 2024

      Musk threatens to ban Apple devices over OpenAI integration

      11 June 2024
    • In-depth

      It’s Jensen’s world now

      6 June 2024

      From Talkomatic to WhatsApp: the incredible history of instant messaging

      28 May 2024

      The 20 most influential tech products of all time

      22 May 2024

      Early signs that AI is fuelling a productivity boom

      21 May 2024

      GPT-4o is a stunning leap forward in AI

      18 May 2024
    • TCS

      TCS+ | Telco or ISP? Tired of load shedding chaos? This is for you

      13 June 2024

      TCS+ | Check Point dissects the complexities of cloud security

      11 June 2024

      TCS | MultiChoice declares war on piracy – the man leading the fight

      10 June 2024

      TCS+ | ESET’s Adrian Stanford: how AI will transform cybersecurity

      10 June 2024

      TCS+ | Pinnacle CEO on how AI is going to transform SA business

      6 June 2024
    • Opinion

      Lessons from healthcare for navigating South Africa’s energy crisis

      12 June 2024

      How to maximise solar panel performance in winter

      11 June 2024

      Corrupt municipalities crushing affordable connectivity in South Africa

      4 June 2024

      Post Office debacle shows ANC is out of ideas

      28 May 2024

      Should the SABC have discretion to reject a political ad?

      19 May 2024
    • Company Hubs
      • 4IRI
      • Africa Data Centres
      • Altron Document Solutions
      • Altron Systems Integration
      • Arctic Wolf
      • AvertITD
      • CallMiner
      • Calybre
      • CoCre8
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • E4
      • Entelect
      • ESET
      • Euphoria Telecom
      • iKhokha
      • Incredible Business
      • iONLINE
      • Iris Network Systems
      • LG Electronics
      • LSD Open
      • Maxtec
      • MiRO
      • NEC XON
      • Network Platforms
      • Next DLP
      • Ovations
      • Paratus
      • Ricoh
      • Skybox Security
      • SkyWire
      • Velocity Group
      • Vertiv
      • Videri Digital
      • Workday
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Science
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Public sector » Eskom sues Joburg over R1.1-billion City Power debt

    Eskom sues Joburg over R1.1-billion City Power debt

    Eskom is taking South Africa’s largest city to court over its alleged failure to pay debts totalling nearly R1.1-billion.
    By Staff Reporter6 May 2024
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    Eskom is taking South Africa’s largest city to court over the alleged failure by City Power to pay debts totalling nearly R1.1-billion.

    The utility said it has been “left with no choice” but to apply to the high court for a declaratory order to force City Power to pay up.

    The metro’s electricity utility is struggling to keep the city’s ageing power infrastructure functioning amid a skills deficit, rampant vandalism and theft of its infrastructure, and an insufficient budget for maintenance and capital programmes.

    Eskom said City Power started defaulting on its payments in October, and no payment was received for March

    The case against City Power has been enrolled for 4 June, Eskom said in a statement on Monday. It said City Power started defaulting on its payments in October 2023, and no payment was received for the March 2024 invoice.

    “The debt owed by City Power has reached unprecedented levels, exacerbating Eskom’s already-strained financial situation,” Eskom said.

    “This dire situation not only undermines Eskom’s financial sustainability but also threatens its ability to maintain essential infrastructure, invest in new technologies and meet the growing energy demands of the province (Gauteng),” it added.

    It said City Power had declared a dispute with it recently over “potential overbilling on bulk purchase invoices dating back to 2021”.

    Arbitration

    “Eskom denies the claims made by City Power and will prove its position through the arbitration process,” it said, adding that even though there is a dispute, City Power is obliged to pay its dues. “The dispute does not absolve it of its legal obligations to pay Eskom for the bulk electricity it has received.”

    But the City of Johannesburg clapped back at Eskom, arguing that the power utility was “rushing to the courts” over a R1.1-billion debt while ignoring Eskom’s R3.4-billion debt to the city for “overcharges” over a number of years.

    “The city is of the strong view that the financial obligations of City Power to Eskom vs the financial obligations of Eskom to the city should be treated in the same manner and symmetrically,” it said in a statement on Tuesday.

    “Following multiple discussions regarding queries that have been lodged in connection with gross inaccurate billing on bulk purchase invoices, Eskom has opted to ignore those issues, and rushed to the courts,” it said.

    According to the statement, the city pays Eskom about R1-billion for electricity every month, and its concerns about it being overbilled for electricity have been raised since 2021.

    “More often than not, the national utility chooses to ignore these discrepancies that are brought to their attention. Eskom has admitted in some cases that there have been potential billing inaccuracies and has so far refunded City Power at least R483-million over the recent years.

    “As a matter of process, the city will be opposing the court application that Eskom filed, because it has no basis in facts and law,” said the CoJ. – © 2024 NewsCentral Media

    Read: Joburg water system on the verge of collapse

    City Power Eskom
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticlePressure on South Africa to introduce ‘right to repair’ rules
    Next Article Apple working on AI chips for data centres: WSJ

    Related Posts

    Telkom warns Icasa call rate cuts will punish smaller players

    13 June 2024

    MultiChoice will ride out Nigeria chaos

    13 June 2024

    TCS+ | Telco or ISP? Tired of load shedding chaos? This is for you

    13 June 2024
    Company News

    How to harness customer insights in the age of information overload

    13 June 2024

    How LayUp is advancing lay-by payments in Africa

    12 June 2024

    Recapping an extraordinary month at Next DLP

    12 June 2024
    Opinion

    Lessons from healthcare for navigating South Africa’s energy crisis

    12 June 2024

    How to maximise solar panel performance in winter

    11 June 2024

    Corrupt municipalities crushing affordable connectivity in South Africa

    4 June 2024

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    © 2009 - 2024 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.