City of Tshwane Signs Arrangement Plan To Settle R6.6 Billion Eskom Debt

• Eskom has reached an agreement with Tshwane to settle the electricity bill that is worth billions
• Tshwane owed the State-Owned Enterprise over R6 billion in debt, and a court battle dragged between Tshwane and Eskom
• The agreement enables Tshwane to pay off the debt in five years with a R400 million payment in December

With nine years of experience, Tebogo Mokwena, a Briefly News current affairs journalist, provided insights into infrastructure challenges and state-owned enterprises in South Africa at Daily Sun and Vutivi Business News.

TSHWANE—The City of Tshwane and Eskom have reached a five-year payment agreement to settle Tshwane's R6.6 billion debt to the power utility.

Tshwane to repay Eskom

According to a statement by Eskom, a court battle ensued between it and the City of Tshwane. Eskom took Tshwane to court after it was in arrears of R6,6 billion. The matter was set down for a hearing in November 2024. Eskom and Tshwane met and made an out-of-court settlement.

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Tshwane will pay in instalments

The agreement stated that Tshwane would settle the debt over five years with a R400 million payment in December 2024. The payment plan agreed that all current accounts must be paid in full on or before their due dates. The agreement also stated that if Tshwane defaulted on the payment, the total amount would become due and payable to Eskom immediately.

Eskom happy with the resolution

Monde Bala, Eskom Group Executive of Distribution, said the agreement pleased Eskom.

"We are pleased to have worked collaboratively with the City of Tshwane to reach this outcome. This agreement plays a part in maintaining the sustainability of Eskom to drive the economic growth of South Africa and reduce our burden on the taxpayer," he said.

Tshwane mayor resolves to solve Eskom debt

In a related article, Briefly News reported that Tshwane's new mayor, Nasiphi Moya, pledged to resolve the Eskom debt.

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She delivered an address shortly after she was sworn in as the mayor and said that the city would focus on financial stability to settle the bill owed to Eskom and other debtors.

Source: Briefly News