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Lights On, Debt Down: Tshwane’s R6.6 Billion Pact with Eskom Sparks Hope
Eskom and the City of Tshwane have agreed on a five-year payment plan to settle the municipality’s massive R6.6 billion electricity debt. The deal was formalized as a court order on November 26, 2024, averting a legal battle scheduled for the same week.
Agreement Details
The payment plan requires Tshwane to make an initial payment of R400 million in December 2024, with the final settlement due by March 2029. Eskom emphasized that strict conditions must be met:
- All current accounts must be paid in full within 30 days of the due date.
- If Tshwane defaults on the arrangement or current payments, the deal will be terminated, and the full outstanding amount will become immediately payable.
The City of Tshwane has reached a landmark agreement with Eskom to settle the R6.67 billion historical debt owed to the utility. This agreement, formalised as a court order on 26 November 2024, is a significant milestone in our journey to financial recovery and stability.… pic.twitter.com/n1sNvMTuOk
— Dr Nasiphi Moya (@nasiphim) December 2, 2024
Eskom’s Perspective
Eskom Group Executive Monde Bala expressed satisfaction with the agreement, highlighting its importance in ensuring the utility’s financial sustainability.
“This agreement supports Eskom’s ability to drive South Africa’s economic growth and reduce the burden on taxpayers,” said Bala.
City of Tshwane Mayor Nasiphi Moya acknowledged the weight of the inherited debt, which had exceeded R7 billion. She described the financial strain caused by balancing current electricity bills with efforts to reduce debt and pay accrued interest.
“This agreement is a significant milestone in our journey toward financial recovery and stability. It brings us one step closer to resolving the financial challenges we face,” Moya said.
The payment arrangement offers both parties a path forward while ensuring Eskom can continue operating effectively. Tshwane’s adherence to the terms of the deal will be crucial for its financial recovery and for maintaining a stable electricity supply to residents.
📹 WATCH: “I am pleased to announce that the City has reached a landmark agreement with Eskom to settle this issue [Eskom debt].”
Tshwane Mayor Dr. @NasiphiM provides updates on key issues critical to the City’s recovery, including the Eskom debt.#LetsFixTshwane 🛠️💚 pic.twitter.com/x86o7l6ADW
— ActionSA (@Action4SA) December 2, 2024
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