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Ekurhuleni and Eskom entered into an agreement for a payment plan after the power supplier had earlier indicated its intention in a notice in terms of the Act on the Promotion of Administrative Justice (Paja) to reduce or suspend bulk power supply to Ekurhuleni.
After the notification, the metro entered into a payment plan for arrears, as well as for the payment of current accounts, with the power supplier.
According to a joint statement from Eskom and Ekurhuleni, the agreement will now be made an order of the court and settles the current litigation between the parties regarding the supply of bulk electricity.
“The city recognizes Eskom’s legal and managerial obligation to protect the sustainability of the national power supply system. Eskom has a legal obligation to ensure the financial sustainability of power supply and to treat all customers fairly,” the statement reads.
According to the statement, Ekurhuleni also confirmed that he is fully committed to the fulfillment of his payment agreement with Eskom, as well as to the payment of future power bills.
As part of the agreement, Ekurhuleni has now settled R1.7 billion of the R3.4 billion it owes Eskom in March. This is in line with the agreed payment plan.
The balance will be paid over a period of 18 months and the city has given the company that it will keep track of payments for the current account.
“The payments represent a significant step towards normalizing the city’s power bill and settling historical obligations, while ensuring that current obligations are met in accordance with the agreed payment terms.
“Residents and businesses in Ekurhuleni are therefore assured that thanks to the intervention and the agreed payment agreement, there is no immediate danger of bulk power supply being suspended.”
Residents were asked to continue paying for municipal services because the collection of this revenue remains crucial for maintaining and improving service delivery.
“The city and Eskom remain committed to transparent relations and continue to keep the public informed as discussions progress.”