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Multiparty Coalition Government shaves R1 billion off its Eskom debt thanks to improved revenue collection

The City of Tshwane is delighted to announce that it has made significant progress in its commitment to settle the more than R6 billion of its arrear debt to Eskom.

It is encouraging to note that, shortly after the current Coalition Government assumed office, the City managed to reduce its Eskom debt by R1 billion.

This amount was accumulated through historical invoices which the City could not pay, representing seven unpaid invoices between October 2023 and May 2024. 

Following a lengthy litigation process, the two parties reached consensus and agreed to a payment arrangement plan to settle the City’s R6 661 123 246, 86 owed to the power utility. The debt will be repaid over a five-year period, which started in December 2024, with the last payment scheduled for March 2029.

In the same period, the City also managed to settle its Eskom current accounts in full, on or before the due dates totaling R5 billion. 

This means that Tshwane has simultaneously paid Eskom an amount of more than R6 billion – for the historical debt, while at the same time honouring the obligation to its current accounts – within a period of four months.

These payments were made possible by our effective revenue collection programme which encompasses the #TshwaneYaTima Campaign. It is also through our loyal customers who strive to pay their accounts every month, keeping the current accounts up to date, with not a single day of arrears on their accounts, that the City managed to consistently pay the power utility and other creditors.

The City is once more urging customers whose accounts are still in arrears to make payment arrangements to settle their debt, to enable the City to continue to honour its debt obligations, particularly those that are related to bulk supply of basic services. 

Customers are encouraged to take advantage of the City’s Incentive and Debt Relief Scheme, whose aim, inter alia, is to provide financial relief to the hard-pressed residents, businesses, deceased estates, indigent and child-headed households. The programme, which came into effect this month, will run until end of June 2025. 

The City is also currently running an ‘Amnesty Programme’ for customers that have tampered with their electricity meters or have illegally connected to the City’s electricity grid. Customers are urged to come forward and disclose that they have tampered with their meters and/or illegally connected, for the tamper fee of R29 000 to be waived. The deadline for the amnesty programme is 31 March 2025.

Customers can visit their nearest municipal office or send their settlement request to creditcontrol@tshwane.gov.za or debtcollection@tshwane.gov.za.

We would like to express our heartfelt appreciation and gratitude to all customers who are paying their municipal accounts frequently, in full and on time.

Issued by Deputy Executive Mayor of Tshwane & MMC for Finance Eugene Modise