Responding to media reports alleging that the municipal entity owed Eskom just over R1 billion, City Power rubbished such reports as “factually incorrect and misleading”.
“We would like to place it on record that City Power, like any other entity, purchases electricity from Eskom which it on-sells to its customers across Johannesburg,” managing director Sicelo Xulu said in a statement.
“City Power in turn pays Eskom on or before the due date which is a practice that is done in the normal course of doing business.”
City Power makes its monthly payments to Eskom on time every month, Xulu said, adding that it was guided by corporate governance principles and accepted business practice in its dealings with all its suppliers including Eskom.
This week, Eskom’s group executive for sustainability, Dr Steve Lennon said the utility’s municipal debt amounted to roughly R11 billion, but only R3 billion of that amount was in arrears.
Lennon was responding to questions regarding reports that municipalities across the country owed Eskom in excess of R10 billion.
In a written response to parliamentary questions, Co-operative Governance Minister Pravin Gordhan revealed that municipalities and metropolises across the country had accumulated a total debt of R10.8 billion, and of them City Power was Eskom’s biggest debtor.
However, City Power dismissed reports that it was in arrears.
The reports misrepresented the facts and created a false perception that City Power was in arrears, Xulu said.
“We are engaging with the authorities in this matter to ensure they have correct records on this matter, he said. “We have always enjoyed a constructive and professional relationship with Eskom and all our suppliers, and we look forward to continued meaningful relations with all our stakeholders.”
