Eskom, the South African electricity public utility, has recently filed a lawsuit against City Power in Johannesburg over a debt exceeding one billion rand. City Power, among other defaulters, poses a significant threat to Eskom’s financial stability.
According to Eskom’s Gauteng spokesperson, Amanda Qithi, the decision to take legal action against City Power was a last resort after numerous failed attempts to resolve the matter through engagements and dispute meetings.
Qithi explained that Eskom had issued notices to City Power prior to filing the application, demonstrating a series of attempts to address the issue.
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City Power began defaulting on its payments in October of the previous year, and despite ongoing engagements, the situation has persisted.
Qithi further highlighted the substantial impact of City Power’s high monthly bill on Eskom’s financial standing, emphasizing the significance of resolving the matter promptly.
The legal action taken by Eskom against City Power underscores the importance of honouring financial obligations and the potential consequences of defaulting.
It serves as a reminder to other municipalities and defaulters that Eskom will take necessary measures to protect its financial stability.
Resolving the dispute between Eskom and City Power is crucial for the sustainable functioning of the electricity supply in Johannesburg.
It is hoped that through the legal process, a resolution can be reached that ensures the financial stability of both parties and guarantees uninterrupted electricity provision to the residents of Johannesburg.
City Power’s R1,073 billion debt forces Eskom to approach the High Court pic.twitter.com/szx2gvFDBu
— Eskom Hld SOC Ltd (@Eskom_SA) May 6, 2024
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