The City of Tshwane has noted the Eskom media statement in which it threatens to disconnect the provision of electricity to the municipality due to the delayed payment of our current account.
We acknowledge the R1,6 billion current account and we intend to service this amount. Our finance team has consistently been engaging Eskom on a payment plan. We understand our responsibility to service our account. However, it is important that we point out a few facts regarding this amount:
- The amount owed is only four days in arrears.
- The outstanding amount only relates to July 2022 and all prior debt was paid. This is only a current invoice.
- Our entire value system is not aligned. The Eskom payment date is in 15 days (16 August 2022). The City’s invoices for July 2022 are payable around 21 August 2022.
- On average, residents pay the City in a 60-day cycle for services consumed while Eskom expects payment in 15 days. The City has zero cash reserves to bridge this gap with payments from our coffers, which results in the current situation.
- We have been continuously engaging Eskom on payment plans and will continue to do so. We have previously met with the Eskom CEO and CFO and discussed the City’s financial challenges, so we note this Eskom statement with disappointment.
The City of Tshwane remains committed to paying what we owe and ensuring that we service our Eskom accounts. This is why we have embarked on our aggressive revenue-collection campaign to ensure that we collect enough revenue to service our creditors like Eskom.