The City of Johannesburg is dismayed by Eskom’s decision to resort to legal action in demanding payment of R1 billion while overlooking its own outstanding debt of R3.4 billion in overcharges accumulated over the years. The City believes that the financial obligations between City Power and Eskom should be treated equitably and in a balanced manner.
Despite numerous discussions addressing significant discrepancies in bulk purchase invoices, Eskom chose to disregard these concerns and pursue legal action prematurely.
For clarity, the City consistently pays Eskom approximately R1 billion monthly for electricity, demonstrating its commitment to fulfilling its obligations for validated services rendered.
It’s crucial to contextualise this issue within the ongoing challenges.
Since 2021, the City has raised concerns with Eskom regarding alleged overbilling, backed by thorough validation processes conducted by City Power’s metering infrastructure. Despite these efforts, Eskom often disregards identified discrepancies.
Although Eskom has acknowledged some billing inaccuracies and refunded City Power approximately R483 million in recent years, substantial outstanding amounts remain unresolved.
In recent engagements, the City proposed involving an independent electricity expert to address Eskom’s concerns, yet Eskom has been hesitant to embrace this suggestion.
The City’s primary objective is to resolve this dispute amicably, prioritising the welfare of Johannesburg residents and the broader national interest. Therefore, expedited resolution through dispute mechanisms is imperative.
In adherence to due process, the City will contest Eskom’s court application as it lacks factual and legal merit.
07/05/2024
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