Zuko Komisa
Eskom obtains a court judgment against COJ and City Power for payment of R1 billion debt.
The City of Johannesburg (CoJ) and City Power (CP) have been ordered by the Johannesburg High Court to pay R1.073 billion towards an outstanding electricity debt with Eskom.
The decision was made in response to an R3.4 billion unpaid bill that Eskom filed a lawsuit against the city and its electricity provider. Eskom claimed it was left with no option but to ask the court for a declaratory order compelling City Power to make good on its outstanding debt for the electricity it delivered.
In May, Eskom filed a lawsuit against the regional power company, hoping to force it to pay off its debt. This came about after the utility began to fall behind on its payments in October of 2023. Additionally, the March 2024 invoice was not paid for.
“When the matter was heard on 4 June 2024, the total amount owed to Eskom by CoJ/CP was R3.4 billion. The City in response to Eskom’s application, brought a counterclaim against Eskom for R3.4 billion alleging potential over-billing and that, as a result it has applied an automatic set-off against Eskom electricity account. Furthermore, the court dismissed the counterclaim by the City with costs, consequently dismissing the automatic set-off claim. Eskom has written a letter to COJ/CP demanding payment of the full amount of R3.4 billion by 21 June 2024 and we hope they will respect the court decision and settle all outstanding debts to Eskom.
Ëskom said in a statement
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Written by: Zuko
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