Eskom declares dispute with Lesedi municipality
Eskom has declared a dispute with the Lesedi local municipality after “exhausting all avenues” to recover millions of rands owed to the cash-strapped power utility.
Eskom Gauteng spokesperson, Amanda Qithi says this is in line with the Intergovernmental Relations Framework Act (IRFA).
The local municipality’s current debt owed to Eskom is R125 million as of 30 June 2023.
"This is compounding debt from June 2022 when the municipality started to default on its payments. In January 2023, Lesedi submitted a payment proposal to Eskom to settle the arrear debt, which Eskom accepted on the condition that it would continue to service its monthly current account," says Qithi.
"The municipality defaulted on both the repayment and the current account by failing to settle the April 2023 invoice of R20 million that was payable on 29 May 2023, and only paid R7 million."
Qithi says the power utility has issued a June 2023 invoice of R38 million which must be paid before 27 July.
She says debt by municipalities nationwide is putting a strain on the grid.
"The May 2023 invoice of R21 million which was due on 29 June 2023 remains unpaid. Failure to service debt by Lesedi Local Municipality and other defaulting municipalities burdens the power utility’s revenue streams, ultimately affecting service delivery. This further puts a strain on Eskom's finances and its ability to operate effectively."
ALSO READ:
