Eskom Secures Court Judgment Against City of Johannesburg and City Power

The national power utility expressed hope that the city would respect the court's decision and settle all outstanding debts.

Eskom has secured a court judgment against the City of Johannesburg (CoJ) and City Power for the payment of their outstanding R1.073 billion debt. The city's local power utility has been defaulting on its payments since October last year.

As of the court hearing on 4 June 2024, the total amount owed to Eskom by CoJ and City Power had escalated to R3.4 billion. In response, the city filed a counterclaim against Eskom for the same amount, alleging potential over-billing and implementing an automatic set-off against Eskom's electricity account. However, the court dismissed the city's counterclaim with costs, thereby rejecting the automatic set-off claim.

Eskom has since issued a demand letter to CoJ and City Power, requiring the full payment of R3.4 billion by 21 June 2024. The national power utility expressed hope that the city would respect the court's decision and settle all outstanding debts.

Last month, Eskom stated that it had been compelled to seek legal recourse due to the city's unpaid debt, which has significantly impacted Eskom's financial stability. The utility highlighted that the growing debt undermines its financial sustainability and hampers its ability to maintain essential infrastructure, invest in new technologies, and meet the increasing energy demands of the province.