Eskom makes R6.7-billion payment plan for South African capital

The City of Tshwane has signed a payment plan to settle its nearly R6.7 billion debt to Eskom, the state-owned power utility has announced.

Eskom had taken the municipality to court over its bulk arrears debt, but the two parties met before the hearings and agreed to a five-year payment arrangement plan.

“Eskom is pleased to announce that the City of Tshwane has signed a payment arrangement plan to settle its R6,661,123,246 debt owed to the power utility,” it said in a statement.

“In terms of the payment arrangement plan, the City of Tshwane has committed to make the initial payment of R400 million in December 2024, with the last payment scheduled for March 2029.”

Eskom highlighted the conditions surrounding the payment arrangement plan.

Firstly, all City of Tshwane current accounts must be paid in full on or within 30 days before their due date.

Secondly, if the municipality defaults on the payment plan or its current accounts at any time, Eskom will terminate the arrangement, and the total amount owed will become due and payable immediately.

“We are pleased to have worked collaboratively with the City of Tshwane to reach this outcome,” said Eskom Group Executive for Distribution, Monde Bala.

“This agreement plays a part in maintaining the sustainability of Eskom to drive the economic growth of South Africa and reduce our burden on the taxpayer.”