The High Court in Johannesburg has ordered the City of Joburg and its power entity City Power, to pay Eskom more than R1 billion, with interest, for its unpaid electricity account. This after Eskom dragged the two to court, after they defaulted on its account in 2003.
“When the matter was heard on 4 June 2024, the total amount owed to Eskom by City of Joburg and City Power 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 that, as a result it has applied an automatic set-off against Eskom electricity account. Furthermore, the court dismissed the counterclaim by the City with costs, consequently dismissing the automatic set-off claim,” said Gauteng Eskom spokesperson, Amanda Qithi.
Qithi added that the power utility has written a letter to the two, demanding payment of the full amount of R3.4 billion by 21 June 2024 and they hope that they will respect the court decision and settle all outstanding debts to Eskom.
Meanwhile, City of Joburg and City Power said they noted the judgment and will appeal it. The two are adamant that critical aspects of the evidence were not fully considered by the court in reaching its conclusion.
“While we accept and respect the court’s decision, the City reserves the right to appeal the ruling.
“It should be highlighted that despite City Power’s efforts to engage in mediation and exhaust all Inter-Governmental Relations (IGR) dispute resolution processes to resolve the matter, Eskom bypassed these avenues and rushed to court to seek a resolution.
“It is equally crucial to highlight that Eskom currently owes City Power a substantial amount of R3.4 billion, underscoring the complexity of the dispute and the necessity for a comprehensive and fair resolution process,” said City Power spokesperson, Isaac Mangena.
Mangena stressed that legal teams have been briefed and the appeal has been lodged as the City of Joburg and City Power believe that a full bench will find differently.
