Eskom has launched legal action against City Power over its outstanding debt of nearly R1.1 billion, the state-owned power utility announced on Monday evening.
“The debt owed by City Power has reached unprecedented levels, exacerbating Eskom’s already strained financial situation.” In an attempt to defend its debt, City Power declared a dispute against Eskom for allegedly overbilling the municipal power utility on bulk purchases dating back to 2021. “In terms of the electricity supply agreements sanctioned by the Electricity Regulation Act of 2006, if a municipality raises a dispute with Eskom, it must still pay.”presents a major threat to Eskom’s already dire financial situation. It has already called out the City of Tshwane for failing to pay its energy bills on several occasions.