Electricity Minister Dr. Kgosientsho Ramokgopa says a payment settlement has been reached between Johannesburg’s utility, City Power and Eskom in their debt dispute.
City Power will now pay R3.2 billion of the debt it owes to Eskom over a period of four years.
Ramokgopa says the power utility will be exempted from paying during winter periods. The settlement was reached following a mediation process after a court instructed both parties to find a resolution over the payment dispute.
Ramokgopa explains, “It’s important that there’s an appreciation that this is a big ticket of three-point-two billion rands. Of course, that amount has been in dispute, and City Power, I want to emphasise and the City of Johannesburg have done everything possible to maintain paying the current account despite all these difficulties. Of course, there will be challenges from one month to the other, but the issue remains in dispute until we resolve this matter.”
