By Phenyo Selinda
The Johannesburg High Court has mandated the City of Johannesburg (CoJ) and City Power (CP) to remit R1.073 billion, inclusive of interest, to Eskom for outstanding electricity bills.
Eskom Triumphs in Legal Battle Over Unpaid Bills
The legal wrangle between Eskom and the City of Johannesburg has culminated in a significant victory for the power utility. The High Court in Johannesburg has ruled in favour of Eskom, compelling both the City of Johannesburg (CoJ) and City Power (CP) to settle an unpaid electricity account amounting to R1.073 billion with added interest.
Persistent Defaults Since October 2023
According to Eskom, the legal action stemmed from consistent defaults by CoJ and CP beginning in October 2023. Despite numerous attempts by Eskom to engage with the municipal entities, the overdue payments continued to accumulate, reaching a staggering R3.4 billion as of June 2024.
Court Proceedings and Rulings
“When the matter was heard on 4th 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 consequently applying an automatic set-off against Eskom’s electricity account. However, the court dismissed the counterclaim by the City with costs, subsequently dismissing the automatic set-off claim,” Eskom stated.
The court’s decision has fortified Eskom’s stance, demanding accountability and financial rectitude from municipal entities.
Eskom Seeks Immediate Settlement
In a recent statement, an Eskom spokesperson emphasized the urgency for CoJ and CP to comply with the court ruling. “Eskom has written a letter to CoJ/CP demanding payment of the full amount of R3.4 billion by 21st June 2024. We hope they will respect the court’s decision and settle all outstanding debts to Eskom.”
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