Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News

      Public money, private plans: MPs demand Post Office transparency

      13 June 2025

      Coal to cash: South Africa gets major boost for energy shift

      13 June 2025

      China is behind in AI chips – but for how much longer?

      13 June 2025

      Singapore soared – why can’t we? Lessons South Africa refuses to learn

      13 June 2025

      10 red flags for Apple investors

      13 June 2025
    • World

      Yahoo tries to make its mail service relevant again

      13 June 2025

      Qualcomm shows off new chip for AI smart glasses

      11 June 2025

      Trump tariffs to dim 2025 smartphone shipments

      4 June 2025

      Shrimp Jesus and the AI ad invasion

      4 June 2025

      Apple slams EU rules as ‘flawed and costly’ in major legal pushback

      2 June 2025
    • In-depth

      Grok promised bias-free chat. Then came the edits

      2 June 2025

      Digital fortress: We go inside JB5, Teraco’s giant new AI-ready data centre

      30 May 2025

      Sam Altman and Jony Ive’s big bet to out-Apple Apple

      22 May 2025

      South Africa unveils big state digital reform programme

      12 May 2025

      Is this the end of Google Search as we know it?

      12 May 2025
    • TCS

      TechCentral Nexus S0E1: Starlink, BEE and a new leader at Vodacom

      8 June 2025

      TCS+ | The future of mobile money, with MTN’s Kagiso Mothibi

      6 June 2025

      TCS+ | AI is more than hype: Workday execs unpack real human impact

      4 June 2025

      TCS | Sentiv, and the story behind the buyout of Altron Nexus

      3 June 2025

      TCS | Signal restored: Unpacking the Blue Label and Cell C turnaround

      28 May 2025
    • Opinion

      Beyond the box: why IT distribution depends on real partnerships

      2 June 2025

      South Africa’s next crisis? Being offline in an AI-driven world

      2 June 2025

      Digital giants boost South African news media – and get blamed for it

      29 May 2025

      Solar panic? The truth about SSEG, fines and municipal rules

      14 April 2025

      Data protection must be crypto industry’s top priority

      9 April 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Wipro
      • Workday
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Public sector » Eskom sues Joburg over R1.1-billion City Power debt

    Eskom sues Joburg over R1.1-billion City Power debt

    Eskom is taking South Africa’s largest city to court over its alleged failure to pay debts totalling nearly R1.1-billion.
    By Staff Reporter6 May 2024
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    Eskom is taking South Africa’s largest city to court over the alleged failure by City Power to pay debts totalling nearly R1.1-billion.

    The utility said it has been “left with no choice” but to apply to the high court for a declaratory order to force City Power to pay up.

    The metro’s electricity utility is struggling to keep the city’s ageing power infrastructure functioning amid a skills deficit, rampant vandalism and theft of its infrastructure, and an insufficient budget for maintenance and capital programmes.

    Eskom said City Power started defaulting on its payments in October, and no payment was received for March

    The case against City Power has been enrolled for 4 June, Eskom said in a statement on Monday. It said City Power started defaulting on its payments in October 2023, and no payment was received for the March 2024 invoice.

    “The debt owed by City Power has reached unprecedented levels, exacerbating Eskom’s already-strained financial situation,” Eskom said.

    “This dire situation not only undermines Eskom’s financial sustainability but also threatens its ability to maintain essential infrastructure, invest in new technologies and meet the growing energy demands of the province (Gauteng),” it added.

    It said City Power had declared a dispute with it recently over “potential overbilling on bulk purchase invoices dating back to 2021”.

    Arbitration

    “Eskom denies the claims made by City Power and will prove its position through the arbitration process,” it said, adding that even though there is a dispute, City Power is obliged to pay its dues. “The dispute does not absolve it of its legal obligations to pay Eskom for the bulk electricity it has received.”

    But the City of Johannesburg clapped back at Eskom, arguing that the power utility was “rushing to the courts” over a R1.1-billion debt while ignoring Eskom’s R3.4-billion debt to the city for “overcharges” over a number of years.

    “The city is of the strong view that the financial obligations of City Power to Eskom vs the financial obligations of Eskom to the city should be treated in the same manner and symmetrically,” it said in a statement on Tuesday.

    “Following multiple discussions regarding queries that have been lodged in connection with gross inaccurate billing on bulk purchase invoices, Eskom has opted to ignore those issues, and rushed to the courts,” it said.

    According to the statement, the city pays Eskom about R1-billion for electricity every month, and its concerns about it being overbilled for electricity have been raised since 2021.

    “More often than not, the national utility chooses to ignore these discrepancies that are brought to their attention. Eskom has admitted in some cases that there have been potential billing inaccuracies and has so far refunded City Power at least R483-million over the recent years.

    “As a matter of process, the city will be opposing the court application that Eskom filed, because it has no basis in facts and law,” said the CoJ. – © 2024 NewsCentral Media

    Read: Joburg water system on the verge of collapse



    City Power Eskom
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticlePressure on South Africa to introduce ‘right to repair’ rules
    Next Article Apple working on AI chips for data centres: WSJ

    Related Posts

    Coal to cash: South Africa gets major boost for energy shift

    13 June 2025

    Why AI could soon be managing your home solar system

    9 June 2025

    Eskom takes a bet on ‘green hydrogen’

    21 May 2025
    Company News

    Huawei Watch Fit 4 Series: smarter sensors, sharper design, stronger performance

    13 June 2025

    Change Logic and BankservAfrica set new benchmark with PayShap roll-out

    13 June 2025

    SAPHILA 2025 – transcending with purpose, connection and AI-powered vision

    13 June 2025
    Opinion

    Beyond the box: why IT distribution depends on real partnerships

    2 June 2025

    South Africa’s next crisis? Being offline in an AI-driven world

    2 June 2025

    Digital giants boost South African news media – and get blamed for it

    29 May 2025

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    © 2009 - 2025 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.