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Tshwane signs payment agreement with Eskom to settle R6.6bn debt

Tshwane signs payment agreement with Eskom to settle R6.6bn debt

The City of Tshwane has signed a payment arrangement plan to settle its R6.6 billion debt owed to the power utility.

This comes after the utility took the City to court for bulk electricity supply arrear debt and the matter was set down for hearing on 26 and 27 November 2024. 

However, Eskom said the parties have since met and agreed on a five-year payment arrangement plan, which was formalised as a court order on 26 November 2024. 

“In terms of the payment arrangement plan, the City of Tshwane has committed to make the initial payment of R400 million in December 2024, with the last payment scheduled for March 2029,” Eskom explained in a statement on Monday. 

The payment arrangement plan is subject to two conditions: 

  • All current accounts must be paid in full on or before their due dates. 
  • If the City defaults on the payment arrangement and the current accounts, the payment arrangement shall be terminated, and the full amount owing will become due and payable to Eskom immediately.

“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,” Eskom Distribution Group Executive, Monde Bala, said. 

Tshwane Mayor, Dr Nasiphi Moya, has described this arrangement as a “landmark agreement”. 

“This agreement is a significant milestone in our journey to financial recovery and stability,” Moya said.

According to the Mayor, the City has already paid R425 million in arrears for October 2024. 

“A critical condition of this agreement is the timely payment of current accounts within 30 days of billing.” 

Moya believes that this settlement signals a turning point, ending years of costly litigation and redirecting focus toward improving service delivery and enhancing revenue collection systems. 

“My administration is fully committed to honouring this arrangement in full. We will adopt stronger financial governance practices to ensure this never happens again, safeguarding the City’s resources and financial health,” the Mayor said. – SAnews.gov.za

Gabisile
Tue, 12/03/2024 – 10:20

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Tuesday, December 3, 2024

The City of Tshwane has signed a payment arrangement plan to settle its R6.6 billion debt owed to the power utility.

This comes after the utility took the City to court for bulk electricity supply arrear debt and the matter was set down for hearing on 26 and 27 November 2024. 

However, Eskom said the parties have since met and agreed on a five-year payment arrangement plan, which was formalised as a court order on 26 November 2024. 

“In terms of the payment arrangement plan, the City of Tshwane has committed to make the initial payment of R400 million in December 2024, with the last payment scheduled for March 2029,” Eskom explained in a statement on Monday. 

The payment arrangement plan is subject to two conditions: 

  • All current accounts must be paid in full on or before their due dates. 
  • If the City defaults on the payment arrangement and the current accounts, the payment arrangement shall be terminated, and the full amount owing will become due and payable to Eskom immediately.

“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,” Eskom Distribution Group Executive, Monde Bala, said. 

Tshwane Mayor, Dr Nasiphi Moya, has described this arrangement as a “landmark agreement”. 

“This agreement is a significant milestone in our journey to financial recovery and stability,” Moya said.

According to the Mayor, the City has already paid R425 million in arrears for October 2024. 

“A critical condition of this agreement is the timely payment of current accounts within 30 days of billing.” 

Moya believes that this settlement signals a turning point, ending years of costly litigation and redirecting focus toward improving service delivery and enhancing revenue collection systems. 

“My administration is fully committed to honouring this arrangement in full. We will adopt stronger financial governance practices to ensure this never happens again, safeguarding the City’s resources and financial health,” the Mayor said. – SAnews.gov.za

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