Eskom and City Power strike a debt deal
City Power and Eskom have reached an agreement over their long-standing electricity billing and debt dispute.
The two parties have been in dispute regarding the amount owed to Eskom as debt and how the power utility bills City Power for bulk electricity supply.
During a media briefing on Tuesday, the Minister of Electricity and Energy, Dr Kgosientsho Ramokgopa, announced that:
• City Power will pay an amount of R3.2 billion to Eskom over the next four years
• Eskom will write off some R830 million in penalties and related costs
'We have accepted that there are major challenges with regards to tariffs during winter. There is a time of use and during winter, the tariff is particularly heavy, and households, industries and customers find it very difficult to meet their obligations. So, we have accepted that during winter periods, there will be relief in relation to the payment of the R3.2 billion.
'We have been able to write off that R830 million as a result of firstly, they don't have to pay interest on that which is owed.
'Eskom has also conceded with regard to the load shedding estimations and also the penalties that have to do with notifiable maximum demand.
'So, all of those have been removed… totalling to R830 million and that's the concession that Eskom has made,' Ramokgopa explained.
The Minister said the resolution of the dispute between the two entities can be used as a template for other struggling municipalities.
'We are excited about this development. We also have something similar in Tshwane and as and when municipalities come forward, we will have these discussions on how best to provide a degree of relief.
'Of course there must be a case that is presented, accepting that Eskom has also got its obligations… they need to collect because they generate electricity.
'That costs money and they must recover that money from the end user to reinvest it back into their asset base and into the generation of electricity,' Ramogkopa added.
Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1
Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The South African
13 hours ago
- The South African
Over 400 new bays for hawkers approved in Cape Town CBD
City Council has approved four major informal trading plans around Cape Town, unlocking a total of nearly 800 new trading opportunities. As many as 416 trading bays have been proposed for Cape Town's Grand Parade alone. This is already one of Cape Town's busiest and most contested trading hubs. Other areas set to benefit from the move include Mamre and Pella near Atlantis, Elsies River, and Gatesville. Together, these plans aim to create more inclusive, better-regulated, and economically viable trading spaces for hundreds of hawkers and the communities they serve. 'These plans are not just about regulation – they're about practical improvements that support local traders and stimulate economic activity,' said Alderman James Vos. 'We've pushed to get them approved because I've seen first-hand the positive impact they've had in areas where similar interventions have been implemented.' According to a statement released by the City, the new initiative aims to improve the infrastructure of trading bays and the surrounding spaces. The City also plans to give permits to previously unpermitted hawkers, giving them access to City support services. This in turn would help improve compliance in line with the City's Informal Trading by-law. The breakdown of new trading opportunities is as follows: Grand Parade, Cape Town CBD: 416 bays Gatesville: 265 bays (including 116 new opportunities) Elsies River: 60 bays Mamre and Pella: 42 bays The above allocations are set to significantly expand economic opportunities for hawkers and the entire value chain. Vos also emphasised the importance of consultation in shaping the plans. 'I really enjoy engaging with traders and hearing directly from them about what's needed,' he added. 'These plans are shaped by such conversations and are designed to create cleaner, safer, and more functional trading spaces.' Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1. Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
The South African
a day ago
- The South African
Jessica Motaung talks about Kaizer Chiefs money
Ask most Kaizer Chiefs fans if they believe Amakhosi avoid spending on player transfers, and they will likely concur. Is this true of the Betway Premiership giants? The club's Marketing and Commercial Director, Jessica Motaung, has dismissed that as a false perception. According to Motaung, Kaizer Chiefs spend plenty of money but may be subject to unfair market prices for players. Orlando Pirates legend sends a serious message to Sipho Mbule Left to right: Kaizer Chiefs football manager Bobby, the chairman, Kaizer, and the Sporting Director, Kaizer Jr. Images: BackpagePix 'Chiefs pay a lot of money, sir,' Motuang said via Soccer Laduma . 'So, I'm actually quite surprised so I think it is absolute nonsense. If I look at our budgets and I look and the investments we are making into players and the transfer space. Dylan Cox joins Orlando Pirates 'I also think the South African market needs to evaluate itself. Are the negotiations fair? Are the prices people are asking for players fair? We have to look at our industry but we have certainly made sure and you can see from our investments in the last season. 'Not only in the players but in the technical team. You can see that Chiefs are putting money where its mouth is. It is a matter of making sure we evaluate and make sure our spend gives us the return that we need,' Motaung added. 'For me I would say at Kaizer Chiefs we work as a team, and we must be honest about that, that sometimes things work out and at times they don't. 'I think the guys on the technical side are working very hard and they have the support of the board and the chairman and all of us even at the marketing side. We must be fair in that the market has changed and the climate has changed, and every team goes through cycles and changes. 'There was a time when certain teams were not at the top and experiencing challenges and we are fortunate in that we have had years and years of absolute success. It is just now that we have had a period of challenges, and it is great that we have won the Nedbank Cup. 'We need to be careful in saying we didn't have good players when those players won us the Nedbank Cup,' Motaung added. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1 Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
The South African
a day ago
- The South African
Kaizer Chiefs add top CAF administrator to the roster!
Kaizer Chiefs have added top CAF administrator Kabelo Bosilong to their ranks to help with the running of the club. The news of Bosilong's arrival at Naturena were confirmed by Amakhosi's Marketing Director Jessica Motaung. Bosilong will be working hand-in-hand with Sporting Director Kaizer Motaung Jr and Football Manager Bobby Motaung. With Chiefs' transfer business in full swing for the new season, the 43-year-old football administrator is expected to have an input on of some sort going forward. According to Jessica Motaung, Bosilong's CAF experience and involvement in the marketing and event side will not go to waste at Chiefs. Kaizer Chiefs have roped in top CAF Administrator Kabelo Bosilong. Image: SABC Sport 'It's important for us not to strengthen only on the field but off the field as well. A lot of the time we focus on what's happening on the pitch,' said Motaung as per SABC Sport . 'But certainly, for us to compete internationally and on the continent, we need good administrators. 'It's great to have Kabelo join us and be on board, and we will be bringing in a lot of other people to make sure that the support is not only on the pitch, but at the administration level as well, to make sure this club goes where it needs to go.' 'Well, his role is in football administration, sporting administration, but also with his great experience at CAF, his involvement in the marketing and event side is very valuable, a very unique and holistic role,' she concluded. Let us know your thoughts by leaving a comment below, or send a WhatsApp to 060 011 0211 Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
