South Africa’s (SA) state power utility Eskom has issued the Johannesburg metro with a notice of intention to reduce or completely terminate its electricity supply over unpaid debt exceeding $300 million.
The city has until June 5 to settle an additional $90 million owed to Eskom as part of its mounting payment obligations.
Eskom says the metro has repeatedly failed to honour its Electricity Supply Agreement despite continuing to collect electricity payments from residents and businesses.
The utility has also offered to collect electricity revenue directly on behalf of the municipality through a Distribution Agency Agreement.
The financial crisis facing Johannesburg has been worsened by growing non-payment for municipal services by households and businesses.
Pressure on the city’s finances intensified further after SA’s Finance Minister Enoch Godongwana reportedly raised concerns about the deteriorating state of Johannesburg’s finances in a letter sent to the metro last week.
–ChannelAfrica–
