City of Tshwane Municipality in R635 million arrears – Eskom debt

Thursday, 27 January 2022: Eskom in Gauteng met with the City of Tshwane Executive Mayor, Randall Williams and his leadership team on Tuesday, 25 January 2022 as part of the utility’s efforts to recover debt owed to it by the City. The total debt owed by the City of Tshwane as at 25 January 2021 is R635 million, which was due and payable by 18 January 2021. 

The City of Tshwane’s payment patterns have been irregular over the past six months and have contributed negatively to Eskom’s increasing overdue debt which is in excess of R43.8 billion. Over the past months, we have engaged the City on these irregular payments and the impact they have on Eskom to keep the lights on.

The overdue debt has contributed negatively to the liquidity, financial performance and sustainability of the organisation, where Eskom has to borrow to meet its financial commitments. As a utility, we are obliged to operate this business in a sustainable manner, and to consequently take all the appropriate measures to recover money owed to us. We have initiated the intergovernmental framework, Promotion of Administrative Justice Act and the engagement of the relevant stakeholders to put an end to the increasing debt. “We remain hopeful that the City will review its current position regarding the appeals made to them by Eskom and honour their payments”, concluded Mokwena.


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