Eskom plans to challenge the City of Johannesburgs appeal to the high court. This comes after the court ordered the city to pay Eskom over R1 billion in overdue bills.
Eskom will oppose the appeal because we believe that the City of Johannesburg and City Power are using delay tactics to avoid payment of all outstanding amounts due to Eskom, as ordered by the court, Eskom told Energize. Earlier this month, Eskom applied to the High Court in Johannesburg for a declaratory order to force City Power to pay its escalating debt, reportedly at R1 073 billion as of March 31. At the time, the City of Johannesburg hit back, saying the national power utility owed it R3,4 billion in overcharges.
The court ruled in Eskoms favour on Thursday, June 20, dismissing City Power and the City of Johannesburgs counterclaim.
Ngwako Maenetje , the acting judge of the high court, ruled that R1 billion must be repaid to Eskom, along with accumulated interest, totalling R3,4 billion.
Despite the dispute over set-off, there was a mutual acknowledgement of the debts existence and its need to be paid, Eskom ordered City Power to pay the debt by June 21. However, no money was received. City Power instead said they plan to appeal the decision. 'We obviously do not agree with the judgment, and we reserve the right to appeal,' said Isaac Mangena, City Power spokesperson., Maenetje said. The COJ and City Power do not dispute the account and that it would otherwise have been due and payable in the absence of a claim for set-off, the acting judge said.
Eskom ordered City Power to pay the debt by June 21, however, no money was received. City Power, instead, said it would appeal the decision. We obviously do not agree with the judgement and we reserve the right to appeal, said Isaac Mangena , City Power spokesperson.
The City and City Power believe that critical aspects of the evidence were not fully considered by the court in reaching its conclusion.
Legal teams have been briefed and the appeal has been lodged as the City of Johannesburg and City Power believe that a full bench will find differently.
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