Eskom has now written a letter to City Power demanding payment of the full amount of R3.4 billion by Friday, 21 June 2024.
The High Court in Johannesburg has ordered the City of Joburg and City Power to pay R1.073 billion, including interest, for the unpaid electricity account.
Eskom approached the court in May in an attempt to get the regional power utility to settle its debt. This after the utility started to default on its payments from October 2023. No payment was received for the March 2024 invoice either.The amount relates to bulk electricity that Eskom supplied to the City of Joburg. The bulk electricity supply is in terms of Electricity Supply Agreements binding between Eskom and the City of Joburg.
The City of Joburg contended that the April and May 2024 payments to Eskom are set off against the amount of over R3.4 billion owed to it by Eskom for previous overbilling.In his judgment on Thursday, Judge Maenetje AJ ordered the two entities to pay Eskom R1 billion. “The first respondent, alternatively the second respondent, further alternatively the first and second respondents jointly and severally, the one paying the other to be absolved, are ordered to pay interest on the amount of R1 073 593 894,38 at a rate prescribed in terms of the Prescribed Rate of Interest Act, 55 of 1975 calculated from the date the application was served on the first and second respondents until date of final payment,” reads the judgment.
Eskom has now written a letter to the two entities demanding payment of R3.4 billion by Friday, 21 June 2024.
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