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Tshwane Municipality Implements Payment Plan for R6.6 Billion Eskom Debt

Monday, 2 December 2024: Eskom is delighted to inform that the City of Tshwane has entered into a payment arrangement plan to address its outstanding debt of R6,661,123,246 (Six billion, six hundred and sixty-one million, one hundred and twenty-three thousand two hundred and forty-six) owed to the power utility.

Eskom had previously taken legal action against Tshwane regarding overdue bulk electricity supply payments, with the case scheduled for hearings on 26 and 27 November 2024. Nevertheless, both parties convened and reached an agreement on a five-year payment plan. This arrangement was formalized as a court order on 26 November 2024.

According to the payment plan, the City of Tshwane is set to make an initial payment of R400 million in December 2024, with the final payment expected in March 2029.

The payment arrangement is contingent upon the following conditions:
• All current accounts must be settled in full by their due dates (within 30 days),
• Should the City of Tshwane fail to adhere to the payment plan or on current accounts, the arrangement shall be cancelled, and the total amount owed will become immediately payable to Eskom.

“We are pleased to have collaborated closely with the City of Tshwane to achieve this resolution,” stated Monde Bala, Eskom Group Executive, Distribution. “This agreement is vital for maintaining Eskom’s sustainability, which supports the economic development of South Africa while alleviating the financial burden on taxpayers,” he added.

ENDS

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