Eskom has filed a lawsuit against City Power, seeking to recover a staggering R1.07 billion debt.
Eskom guns after City Power over R1.07 billion debt bill
The national electricity supplier’s move to take City Power to court comes after months of failed negotiations and mounting debts.
As of March 31, 2024, City Power’s outstanding payments have severely impacted Eskom’s ability to sustain its financial health and continue its operations effectively.
The High Court in Johannesburg will hear the case on 4 June 2024, where the power utility will seek a declaratory order compelling City Power to settle its debts.
How much is owed to Eskom?
The total debt owed by City Power to Eskom amounts to approximately R1.07 billion.
According to Eskom, this substantial sum has accumulated over several months, with City Power having defaulted on its payments since October 2023.
The most recent invoice from March 2024 also remains unpaid.
“The debt owed by City Power has reached unprecedented levels, exacerbating Eskom’s already strained financial situation. This dire situation not only undermines Eskom’s financial sustainability but also threatens its ability to maintain essential infrastructure, invest in new technologies and meet the growing energy demands of the province,” the power utility said.
City Power outage report for Monday, 6 May 2024
Amid the financial turmoil, City Power is also grappling with operational challenges.
The Reuven Service Delivery Centre has reported 247 calls, with 88 logged in the last 24 hours alone. Various substations around the city are experiencing issues:
- Robertsham Substation: Operators have restored 71% of the power after a trip in Booysens affected areas including Robertsham and Booysens. Access issues are currently hindering full restoration.
- Moffat Substation: Following a trip at the Tulisa Park distributor, power has been restored to about 36% of the area, affecting Tulisa Park, Steeledale, and neighbouring regions. Efforts are ongoing to achieve full power restoration.
- Soccer City Switching Station: A disruption is affecting Aeroton and nearby areas, with a restoration time to be announced once the cause is identified.
