The City of Ekurhuleni has put it on record that it has not failed to service its account with Eskom.
This follows a statement issued by Eskom on Monday in which the power utility claimed the City owes Eskom R544-million.
“The City believes Eskom’s statement misrepresents the truth, and it is profoundly unfortunate,” said City of Ekurhuleni spokesperson Zweli Dlamini.
“The City of Ekurhuleni has, on multiple occasions, disputed Eskom’s tendency to flout legislated financial practices.
“This is the basis of the dispute lodged with National Treasury.
“The City has made and continues to make concerted efforts for National Treasury to conclude on the dispute lodged in the interest of its citizens.”
Also read: Eskom acknowledges continuing power interruptions
Dlamini explained to protect the reputation and integrity of the City of Ekurhuleni, the City shall not hesitate to initiate litigation against Eskom over the non-compliance with municipal finance legislation and has already written to Eskom to publicly withdraw its statement.
“This action is also intended to ensure electricity supply to residents is not unlawfully disrupted,” he said.
“A crucial aspect to the dispute, and which was already addressed with Eskom, is the incurring of interest charges of approximately R86-m. This amount is strenuously defended.”
The municipality still believes an amicable conclusion can be reached between itself and Eskom to end the impasse.
“The City believes a healthy working relationship with Eskom is still achievable. However, both parties need to commit themselves to transparent communication,” said Dlamini.
“All decisions made in this respect must place the interests of the citizens of Ekurhuleni first.”
The statement issued by Eskom, titled ‘City of Ekurhuleni owes Eskom R544-million’, reads: “The electricity debt owed to Eskom by Gauteng municipalities continues to escalate, as more fail to service their Eskom accounts.
“The City of Ekurhuleni Municipality (“the City”) is among those whose debt has been increasing, with its bill accumulating to R544-m.
“On February 18, 2022, Ekurhuleni paid a partial amount of R530-m of its bulk accounts, which total R1 074-billion that was due.
Also read: Eskom urges customers to use electricity wisely
“The amount of R544-m remains outstanding, as Eskom expects the City to pay the overdue amount.
“This is in breach of the electricity supply agreement between Eskom and the City, and it places a significant strain on the utility’s financial performance and sustainability.
“We have been engaging continuously with the City’s management on this matter, and subsequently escalated it to the Mayor, Tania Campbell.
“However, no assistance was received from the mayor, but instead Eskom was referred back to the City’s management by the mayor.
“The late payments by the City has resulted in Eskom charging it an interest of R86-m year to date.”
Senior manager of customer services in Gauteng Daphne Mokwena said: “With all the engagements with the City’s management and the request for the mayor to intervene, we have seen no action from them as no payment has been received thus far.
“It is disappointing to see how the municipality, with the mayor, is dealing with the matter, as no sense of urgency is observed by them.”
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