The battle over a billing dispute between City Power and Eskom is set to continue.
The City of Johannesburg (CoJ) and City Power have lodged an appeal against a high court judgment ordering them to pay an outstanding debt to Eskom.
Eskom, which said the city has been defaulting on its electricity account since October 2023, gave the city an ultimatum to settle the outstanding amount on Friday.
While City Power briefed its attorneys on Friday, Eskom said it has noted the statement issued by the utility and hopes the city will respect the court decision and settle all outstanding debts.
“We have noted the judgment in the case between Eskom and City Power. We obviously do not agree with it and we reserve the right to appeal,” said City Power spokesperson Isaac Mangena.
He said they would issue a statement on their next course of action.
Asked if it would cut off the City of Johannesburg if it did not pay the outstanding debt, Eskom said it would not pre-empt the outcome of the process.
It reiterated what it said in an earlier statement.
“Eskom has written a letter to the CoJ/City Power demanding payment of the full amount of R3.4bn by June 21 and we hope they will respect the court decision and settle all outstanding debts to Eskom,” it said.
CoJ and City Power said they had noted the court order in favour of Eskom.
On Friday afternoon in a joint statement, CoJ and City Power said legal teams had been briefed and an appeal lodged as the city and its electricity entity believed a full bench of the court would find differently.
“The city and City Power believe that critical aspects of the evidence were not fully considered by the court in reaching its conclusion. While we accept and respect the court’s decision, the city reserves the right to appeal the ruling,” said CoJ spokesperson Nthatisi Modingoane.
The city said it should be highlighted that despite City Power's effort to engage in mediation and exhaust all inter-governmental relations (IGR) dispute resolution processes to resolve the matter, Eskom had bypassed these avenues and rushed to court to seek a resolution.
“It is equally crucial to highlight that Eskom owes City Power a substantial amount of R3.4bn, underscoring the complexity of the dispute and the necessity for a comprehensive and fair resolution process,” said Modingoane.
The city, in response to Eskom’s application, brought a counter claim against the power utility, alleging potential over-billing, and applied for an automatic set-off against Eskom's electricity account.
On Thursday Eskom said the court had dismissed the counter claim by the city with costs, consequently dismissing the automatic set-off claim.
The court heard R1.073bn was due by the end of March, and this was the payment order granted in Eskom's favour.
The amount had grown to R3.4bn in June, Eskom said.
TimesLIVE
City Power to appeal against judgment in payment dispute with Eskom
Image: Stock
The battle over a billing dispute between City Power and Eskom is set to continue.
The City of Johannesburg (CoJ) and City Power have lodged an appeal against a high court judgment ordering them to pay an outstanding debt to Eskom.
Eskom, which said the city has been defaulting on its electricity account since October 2023, gave the city an ultimatum to settle the outstanding amount on Friday.
While City Power briefed its attorneys on Friday, Eskom said it has noted the statement issued by the utility and hopes the city will respect the court decision and settle all outstanding debts.
“We have noted the judgment in the case between Eskom and City Power. We obviously do not agree with it and we reserve the right to appeal,” said City Power spokesperson Isaac Mangena.
He said they would issue a statement on their next course of action.
Asked if it would cut off the City of Johannesburg if it did not pay the outstanding debt, Eskom said it would not pre-empt the outcome of the process.
It reiterated what it said in an earlier statement.
“Eskom has written a letter to the CoJ/City Power demanding payment of the full amount of R3.4bn by June 21 and we hope they will respect the court decision and settle all outstanding debts to Eskom,” it said.
CoJ and City Power said they had noted the court order in favour of Eskom.
On Friday afternoon in a joint statement, CoJ and City Power said legal teams had been briefed and an appeal lodged as the city and its electricity entity believed a full bench of the court would find differently.
“The city and City Power believe that critical aspects of the evidence were not fully considered by the court in reaching its conclusion. While we accept and respect the court’s decision, the city reserves the right to appeal the ruling,” said CoJ spokesperson Nthatisi Modingoane.
The city said it should be highlighted that despite City Power's effort to engage in mediation and exhaust all inter-governmental relations (IGR) dispute resolution processes to resolve the matter, Eskom had bypassed these avenues and rushed to court to seek a resolution.
“It is equally crucial to highlight that Eskom owes City Power a substantial amount of R3.4bn, underscoring the complexity of the dispute and the necessity for a comprehensive and fair resolution process,” said Modingoane.
The city, in response to Eskom’s application, brought a counter claim against the power utility, alleging potential over-billing, and applied for an automatic set-off against Eskom's electricity account.
On Thursday Eskom said the court had dismissed the counter claim by the city with costs, consequently dismissing the automatic set-off claim.
The court heard R1.073bn was due by the end of March, and this was the payment order granted in Eskom's favour.
The amount had grown to R3.4bn in June, Eskom said.
TimesLIVE
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