Tshwane: The City of Tshwane has finalized a payment arrangement with Eskom to address its R6.6 billion debt to the power utility. This agreement comes in the wake of legal action initiated by Eskom over overdue bulk electricity supply payments, with the case initially scheduled for a court hearing on 26 and 27 November 2024. The parties have now agreed on a five-year payment plan, which has been formalized into a court order as of 26 November 2024.

According to South African Government News Agency, the arrangement requires Tshwane to make an initial payment of R400 million in December 2024, concluding with the final payment by March 2029. Eskom outlined that the plan is contingent on two conditions: all current accounts must be paid by their respective due dates, and any default by the City on either the arrangement or current accounts will result in the immediate demand for the full outstanding amount.

Monde Bala, Eskom Distribution Group Executive, expressed satisfaction with the collaborative resolution
, highlighting its role in sustaining Eskom’s operations and contributing to South Africa’s economic growth while alleviating taxpayer burdens. Tshwane Mayor Dr. Nasiphi Moya hailed the deal as a ‘landmark agreement’ and a crucial step toward the City’s financial recovery and stability.

The Mayor noted that Tshwane has already settled R425 million in arrears for October 2024, emphasizing the necessity of timely payments within 30 days of billing as a critical condition of the agreement. Moya views this settlement as pivotal, marking an end to prolonged litigation and refocusing efforts on enhancing service delivery and revenue collection. The Mayor affirmed the administration’s commitment to fulfilling the agreement, pledging to implement stronger financial governance measures to prevent future occurrences and protect the City’s fiscal health.