Relief for Tshwane: Portion of R6 billion Eskom debt paid

With more than 100 days since Tshwane Mayor took office, Nasiphi Moya announced on Wednesday that the city has paid some of its debt to Eskom.

In December 2024, City of Tshwane signed a five year payment arrangement plan with Eskom to settle its R6.6 billion debt after court hearings.

Regarding the payment arrangement plan, the city has committed to settling its first payment of R400 million in December 2024, with the final payment scheduled for March 2029.

However, during a media briefing Moya proclaimed that the city paid more than R1 billion to the power utility by end of March 2025.

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R5.6 billion of debt left

Moya stated that this effort in tackling its debt reflects on the city’s determination to secure stable energy supply for its residents.

“This brings the total outstanding amount down to R5.66 billion, just three months after concluding a historic payment agreement with Eskom,” she said.

The city also stated that it reduced its debtors book by an estimated 14% through accelerated efforts to clamp down on residents owing the city.

“We are proud to announce that the R4.7 billion VAT debt linked to the cancelled PEU Smart Meter contract has now been fully settled.

“We have now made a final payment of R128 million, clearing this debt in full. The South African Revenue Service (Sars) has formally acknowledge the settlement,” Moya said.

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City’s overall debt

Moya accounted the progress to intensified revenue collection efforts like Tshwane Ya Tima and the Debt Relief scheme.

According to the mayor, the city’s debt now stands at R25.7 billion, with R2.4 billion written off from registered indigent accounts and R1.8 billion from inactive accounts.

“This marks a major milestone in closing a difficult chapter in the city’s financial history and demonstrates the multi-party coalition governments resolve to clean up the past and build a sustainable future.”

She added that the council will be approached to seek for the extension of the Debt Relief Scheme by three months to allow more residents and businesses to benefit.

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