The City of Tshwane says that it has been engaging with power utility Eskom, over its debt and has been open about its liquidity challenges. This follows a statement released by Eskom, earlier today, saying that it is considering disconnecting the City of Tshwane as one of the necessary steps to secure outstanding payments.
The utility says that the City of Tshwane is in breach of the Electricity Supply Agreement which it holds with Eskom by failing to pay the R1.6-billion which was due last week Wednesday.
Eskom further said that the City has paid R68 million to date which it said did little to dent the massive outstanding balance.
“We owe them one point six billion, that’s only for one month, and that’s for July. It’s the current account which is now in arrears for four days, there’s no other money outstanding to Eskom, it’s only the current account. You know, we sit with a dis-aligned value chain, Eskom invoices our payable within 15 days, on average, residents in the City of Tshwane, pay on 60 days, and we’ve been working really hard in the City of Tswane to try and change this payment culture,” City of Tshwane MMC for finance, Peter Sutton.
VIDEO: Eskom considering disconnecting the electricity supply of City of Tshwane
