Africa-Press – South-Africa. The City of Tshwane paid R876.29 million in Eskom debt on Thursday after “reprioritising” its funds.
Tshwane spokesperson Selby Bokaba told Fin24 the City had reprioritised its funds after engaging other creditors to shift and stagger other payments due.
Eskom on Thursday confirmed it had received proof of payment, although there was a shortfall of R1.7 million. Bokaba said the R1.7 million did not pertain to electricity consumption, but interest levied, and would be paid from a separate account.
The payment comes just days after the utility rejected a payment plan proposed by the municipality, which had failed to pay up a total debt of R908 million by 17 June 2022. Instead Tshwane had made payments totalling R30 million after the deadline.
Eskom said Tshwane’s “erratic payments” over the past year had contributed negatively to the utility’s increasing overdue debt impacting the liquidity, financial performance, and the organisation’s sustainability.
Bokaba said the irregular payments related to Tshwane’s low level of revenue collection, which became particularly worrying in the second quarter of the last financial year.
“Now, instead of collecting about R3.5 billion a month, which enables us to meet all our obligations, we are collecting around R2.7 billion,” he said.
The City embarked on an aggressive collection drive earlier this year when it prominently cut off both private and public sector customers that were in arrears on their water and electricity bills.
Bokaba implored Tshwane residents to help the City to pay its dues to the utility. “It’s important for our customers to pay their accounts in full and on time to enable us to pay Eskom,” he said. “If they can’t afford to play, they can come forward and make a payment arrangement.”
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