The Tshwane city government says it is working with energy company Eskom on its debt and is open about its liquidity problems. This follows a statement released by Eskom earlier today, which said it was considering the possibility of disconnecting the City of Tshwane as one of the necessary steps to secure outstanding payments.

The utility claims the City of Tshwane is in breach of the Electricity Supply Agreement it entered into with Eskom by failing to pay the 1.6 billion rand it was due last week on Wednesday.

Eskom also said the city had paid 68 million rand to date, which it said did little to reduce the huge debt.

“We owe them as much as six billion, that’s just for a month, and that’s for July. It is a current account that is now four days in arrears, Eskom has no other money, it is only a current account. You know, we are sitting with a disrupted value chain, Eskom is billing our debt within 15 days, on average people in the city of Tswane are paying 60 days and we have been working very hard in the city of Tswane to try and change this payment culture,” said Peter Sutton.

VIDEO: Eskom is considering power cuts to the city of Tshwane

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