City of Tshwane sets a good example, pays R878 million to Eskom
Setting a good example of proper government and accountability, the City of Tshwane has officially confirmed the payment of their bill with Eskom. In a social media post, the municipality says it has forked out a whopping R878 million to settle their debt to cash-strapped power utility Eskom. Despite confirming their payment to the state-owned entity,
City of Tshwane sets a good example, pays R878 million to Eskom
Setting a good example of proper government and accountability, the City of Tshwane has officially confirmed the payment of their bill with Eskom.
In a social media post, the municipality says it has forked out a whopping R878 million to settle their debt to cash-strapped power utility Eskom.
Despite confirming their payment to the state-owned entity, the city also spiced up its tweet and suggested it will not tolerate power cuts.
“We hope that the power utility will provide the people of [the City of Tshwane] with constant and reliable power supply,” the post reads.
The payment to Eskom follows a message from the power supply commission, calling out the city as the one with erratic payments.
Through its spokesperson, Sikhonathi Mantshantsha said the erratic payments negatively compounded Eskom’s increasing overdue debt.
“Out of the eight metropolitan municipalities in the country, the City of Tshwane is the only one with erratic payments,” said Mantshantsha.
We can confirm that we paid @Eskom_SA an ammount of R876,296,947.97 today at 10:24:08. We hope that the power utility will provide the people of @CityTshwane with constant and reliable power supply.
— City of Tshwane (@CityTshwane) July 7, 2022
“The city’s erratic payments over the past year have contributed negatively to Eskom’s increasing overdue debt (which is in excess of R46.6 billion), liquidity, financial performance, and the sustainability of the organisation, such that Eskom has to borrow to meet its financial commitments.”
In the wake of prolonged wage negotiations with the trade unions, the power supplier will definitely welcome the payment considering the agreement they just reached with the likes of NUMSA.
Eskom and labour unions agreed to a 7% wage increase at the beginning of this week. The deal, which also allows Eskom workers R400 more for their housing allowance, will now add a further R1 billion to the utility’s expenses.
Moneyweb reports that the city is also going through financial troubles where ratepayers were reluctant to pay their bills.
The municipality was forced to come up with strategies to force the citizens and companies to pay which was known as TshwaneYaTima.
Resulting from the campaign, many businesses and government properties were cut off from municipal services, helping it collect hundreds of millions of rands owed to it.
In recent days the city has re-launched the campaign, seeing it cut off the electricity supply at Prasa offices due to its R11 million outstanding bill to the city.
Main Image: EWN
