Financially challenged Tshwane settles massive R1.6bn Eskom debt

Financially challenged City of Tshwane has confirmed that it has settle the R 1.6 billion outstanding debt it owes embattled state-owned entity Eskom.

The parastatal threatened to disconnect the City to secure the outstanding payment.

While mayor Randall Williams lashed out at Eskom saying it would be unlawful to plunge Tshwane into darkness, the City previously promised it would pay the SOE.

Debt settled

Williams confirmed on Friday that the debt has now been settled.

“I’m pleased to confirm that as of 1pm today,16 September 2022, the City of Tshwane has fully paid Eskom’s August account of R1.6 billion.

ALSO READ: Tshwane promises to settle Eskom debt of more than R1 billion

“As per the payment plan we presented to Eskom, the City has been making daily payments to the power utility and today we paid R185 million to settle the account,” Williams said.

Payment plan

The City of Tshwane paid Eskom in a daily payment plan.

• Friday, 16 September 2022: R185 million

• Thursday, 15 September 2022: R125 million

• Wednesday, 14 September 2022: R110 million

• Tuesday, 13 September 2022: R75 million

• Monday, 12 September 2022: R125 million

Williams said the City has been continuously engaging Eskom on the payment plans and will continue to do so.

“The City of Tshwane remains committed to finding a long-term solution to our financial challenges so we can ensure that we pay creditors like Eskom in full and on time.

“We, therefore, appeal to residents, businesses and other clients to pay their municipal accounts on time so that we can be able to pay creditors like Eskom,” Williams said.

Load shedding

Meanwhile, your weekend will be littered with bouts of power cuts after Eskom, on Friday, announced that stage 4 load shedding will continue until Sunday morning.

The power utility said persistent shortages of generation capacity and breakdowns of a generating unit each at Kriel, Majuba and Tutuka power stations over the past 24 hours have necessitated the continuation of rolling blackouts at stage 4 until 5am on Sunday.

ALSO READ: Weekend of darkness as stage 4 load shedding to continue