US EditionLights on, Debt Down: City Power Agrees to Settle Its R3.2bn Eskom Debt
- On June 24, 2025, City Power and Eskom finalized an agreement whereby City Power will settle a debt of R3.2 billion in installments spread over four years, while Eskom has agreed to forgive R830 million in accumulated interest and penalty charges.
- The settlement followed a long-standing billing and debt dispute caused by municipalities' growing inability to collect payments amid consumer financial strain and economic challenges.
- The agreement includes Eskom's concessions on penalties related to load shedding and estimated billing, alongside temporary winter relief measures to lessen tariff burdens on households and industries.
- Minister Ramokgopa acknowledged the significant difficulties consumers face with tariff payments during the winter months, highlighting that relief measures will be implemented without charging interest to assist those experiencing financial hardship.
- The agreement creates a cooperative framework designed to enhance the management of municipal debt and could provide a useful example for municipalities dealing with comparable financial challenges related to Eskom.
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Total News Sources13
Leaning Left1Leaning Right2Center3Last UpdatedBias Distribution50% Center
Bias Distribution
- 50% of the sources are Center
50% Center
L 17%
C 50%
R 33%
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