City Power and Eskom have successfully reached a resolution, in a 10-year billing dispute.
On Wednesday, Dr Kgosientsho Ramokgopa- Minister of Electricity and Energy and Dada Morero- Johannesburg’s Executive Mayor, witnessed City Power’s agreement to settle the R3.2 billion arrear debt owed to Eskom, in the next four years.
Eskom also conceded to write off debt amounting to R830 million, accumulated over 10 years.
The Ministry intervened to allow the utilities to negotiate in good faith and find an amicable resolution.
The South African National Energy Development Institute (SANEDI) was appointed as an independent technical assessor, to verify metering data from the bulk in-feed points, applied Eskom’s approved tariffs and analysed discrepancies.
“We wanted to give feedback to the rest of the country, on an instrument that we had initiated in November last year to ensure that we bring to bear the power of the Inter- Governmental relations and to ensure that service delivery continues uninterrupted.
Of course, the expectation is that City Power continues to maintain the current account. We are excited about this development” said Dr Ramokgopa.