Power utility Eskom said it is concerned over the financial implications of Tuesday’s KwaZulu-Natal High Court decision which ordered Eskom not to cut off electricity supply to the town of Newcastle
Eskom wanted the Newcastle municipality to make monthly payments of at least R60 million to settle its R 200 million debt, but the municipality said it can only manage to pay R30 million per month.
KwaZulu-Natal Eskom Customer Services Senior Manager Ronald Chonco says, “Eskom respects the court ruling, however this does not bode well for Eskom’s financial sustainability, as municipal debt remains a key issue in terms of Eskom’s liquidity and sustainability challenges.”
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