Two more metros battling to pay Eskom

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Two more metros battling to pay Eskom
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An independent municipal consultant says the money collected by Tshwane must have been used to pay other expenses and points to the notoriously high salary bill in most municipalities. Moneyweb

Eskom has confirmed that Tshwane is not the only one of the country’s eight metros that is battling to pay its Eskom bill for bulk electricity purchases. Mangaung, currently under administration, was unable to cough up the payment due at the end of August and is currently in negotiations with Eskom, while Ekurhuleni is settling its bills only partially on time and paying the balance two weeks late, according to Eskom.

In the meantime business grouping Sakeliga and civil rights group AfriForum have both written to Eskom, warning against such drastic action. Both indicated that they are prepared to approach the courts to prevent Eskom from disconnecting electricity supply to the city. Leon Claassen, analyst at Ratings Afrika, says in the year ended 30 June the city made a net profit of almost 10% from electricity sales. He asks why this was not used to pay Eskom.

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Moneyweb /  🏆 5. in ZA

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