US Edition
Lights on, Debt Down: City Power Agrees to Settle Its R3.2bn Eskom Debt
- On Tuesday, Minister Dr. Kgosientsho Ramokgopa revealed that City Power has agreed to settle its longstanding electricity debt with Eskom by paying R3.2 billion over a four-year period.
- The agreement followed extensive negotiations addressing Eskom's estimated billing, penalties from power cuts, and winter tariff challenges amid widespread financial strain on consumers and municipalities.
- Eskom agreed to cancel approximately R830 million in penalties and interest charges linked to loadshedding and maximum demand fees, while also offering flexible payment arrangements during winter to reduce financial pressure.
- Minister Ramokgopa described the settlement as a template for other municipalities facing mounting debts, with municipal arrears to Eskom exceeding R100 billion and collections impaired by consumer defaults.
- This resolution aims to stabilize revenue flows allowing reinvestment in electricity infrastructure, and it signals prospects for replication in other struggling municipalities to improve service delivery and fiscal management.
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14 Articles
14 Articles
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Center
3
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Total News Sources14
Leaning Left1Leaning Right2Center3Last UpdatedBias Distribution50% Center
Bias Distribution
- 50% of the sources are Center
50% Center
L 17%
C 50%
R 33%
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