In what seems to be a tit-for-tat confrontation between state-owned entities, the City of Johannesburg has responded to Eskom’s decision to drag it to court over a more than R1-billion debt that it owes Eskom.
In a statement on Tuesday, the City of Johannesburg said Eskom should pay the R3.4-billion in overcharges owed to the city.
The city also said it would oppose Eskom’s court application in the Johannesburg High Court, where it seeks an order to force the city to pay R1 073 000 000.
Committed to paying for services
“The City of Johannesburg is taken aback by Eskom’s decision to drag the courts into forcing it to pay an amount of R1-billion, while the national power utility owes R3.4-billion in overcharges over the years,” said the City of Johannesburg.
“The city is of the strong view that the financial obligations of City Power to Eskom and the financial obligations of Eskom to the city should be treated in the same manner and symmetrically.
“Following multiple discussions regarding queries that have been lodged in connection with grossly inaccurate billing on bulk purchase invoices, Eskom has opted to ignore those issues and rushed to the courts.
“For the record, the city pays Eskom about R1-billion for electricity monthly. The city remains committed to paying for services rendered and validated as due, as it always has.
It maintains that it is important to view the current matter within the prevailing context, saying the city has on various occasions raised concerns with the national energy supplier that it is being overbilled for the service received each month since 2021.
Potential discrepancies
“City Power validates bulk purchases for completeness and accuracy using its own check-metering infrastructure at major intake substations,” it said.
“In instances of potential discrepancies, it must be noted that it is due to this checked metering infrastructure that City Power was able to ascertain and quantify the extent of overbilling by Eskom.
“More often than not, the national utility chooses to ignore these discrepancies that are brought to their attention.
“Eskom has admitted in some cases that there have been potential billing inaccuracies and has so far refunded City Power at least R483-million over the past few years.”
In its assessments, the City of Johannesburg said there is so much more that Eskom owes.
Said the City of Johannesburg: “And we have, in our engagement with Eskom two weeks ago, proposed that we bring in an independent electricity expert to give them comfort, and the national power utility has been reluctant.
“The city has always been committed to engaging with Eskom with the expectation of finding an amicable resolution that will benefit our residents in the City of Johannesburg and the country at large; hence, the dispute resolution needs to be expedited.
“As a matter of process, the city will be opposing the court application that Eskom filed because it has no basis in facts or law.”
Declaratory order
On Monday, Eskom stated that “the escalating City Power debt, which is currently at R1 073-billion as of March 31, has left Eskom with no choice but to apply to the high court in Johannesburg for a declaratory order to force City Power to pay what is due to Eskom.
The case has been enrolled for a hearing on June 4.
“The power utility started to default on its payments in October 2023, and no payment was received for the March 2024 invoice,” said Eskom.
