Eskom plans to switch off lights in the Tshwane Metro due to R1,6 billion outstanding debt

Eskom has issued a threat to the Tshwane Metropolitan municipality over their debt as the metro faces the possibility of a blackout. 
 
The South African power utility says the municipality owes them an outstanding debt amounting to the tune of R1.6 billion. 
 
Eskom announced on Tuesday that it was considering disconnecting the City of Tshwane after failing to fork out the outstanding debt of R1.6 billion.  
 
In a statement, the power generator said Tshwane had paid only R68 million of the July invoice, due on 17 August 2022.  
 
“The power utility had numerous engagements with the City of Tshwane’s management to ensure that the City paid its account,” said Eskom. 

“Nevertheless, these actions have not yielded any results as the City has continued with the same pattern. The inconsistent payments are both untenable and unacceptable since Eskom’s financial position is well known.  
 
“The City’s persistent failure to honour its payments places a huge burden on Eskom to continue providing it with electricity. 
 
“We will continue to apply different approaches to recover money owed to it and has acquainted the MEC of Cooperative Governance and Traditional Affairs in Gauteng of the risks associated with the late payment of the City of Tshwane’s electricity account.” 
 
According to News24, a Member of the Mayoral Council for Finance Peter Sutton said the City was behind in its payment for July by five days due to cash flow problems and the lack of cash reserves.  
 
The MMC said the debt was not arrear debt but debt for the month of July and that the City had intended to settle the invoice in a staggered manner throughout the month, but Eskom rejected this.  
 
In June, the City of Tshwane also ran into cash flow problems, paying its account in a staggered manner. But this month, Eskom demanded full payment on the due date.  
 
“We do pay every month, we just pay late. The local payments system gives consumers 30 days. Many of them have stretched this to 60 in the belief that the council allows them an additional 30-day leeway. With us not having cash reserves, it is difficult. The long-term solution is more prepaid meters. For now, it is a tough one but we are working on it,” said Sutton.  
 
Meanwhile, the metro and Eskom, as per Sutton’s confirmation, will meet again with Eskom on Wednesday.  
 
Main Image: City of Tshwane