Electricity Minister Kgosientsho Ramokgopa has intervened to help resolve the standoff between Eskom and the City of Johannesburg over the billion-dollar debt.
Ramokgopa said on Monday that an independent commission would be appointed to settle the debt issues.
This comes after Eskom served the metro with a warning to turn off power due to unpaid debts. The electrical utility claimed that the City of Johannesburg owed it R6.3 billion.
Eskom claimed the city acknowledged the obligation but refused to pay the entire monthly charge. Ramokgopa claimed that a solution might be discovered.
“This is a situation that is going to confront us, so you can kick the can down the road as you like but for as long as people are not paying, or as long as there is significant contraction in the economy or the economy is not growing at the right pace, City Power will not be able to collect what is required.”
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Meanwhile, Johannesburg Mayor Dada Morero has promised to resolve the debt situation with Eskom within 14 days.
Morero stated that the R6.3 billion debt dispute would be settled with the cooperation of Electricity Minister Kgosientsho Ramokgopa.
The mayor stated that discussions would continue as the City of Johannesburg and City Power consider methods to prevent power outages.
“So around the 25th, we will give a clear report on how we have resolved the debt issue between ourselves, which then means it will then officially exit the court processes at that time.
“So that’s where we are and thank you minister for the intervention and the leadership that you’re able to provide.”
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