State power utility Eskom has said it has "no choice" but to approach the Johannesburg High Court to force City Power to pay just over R1-billion in unpaid debt.
Eskom noted that City Power began to default on payments in October 2023 and that it did not receive any payment for March, this year.
Eskom said City Power’s debt reached “unprecedented” levels, “exacerbating” Eskom’s strained financials.
“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. Over and above, City Power declared a dispute regarding potential overbilling on bulk purchase invoiced dating back to 2021. Eskom denies the claims made by City Power and will prove its position through the arbitration process,” the power utility said.
It stressed that the municipality was still obligated to pay for Eskom’s services, even during a dispute.