Newcastle Municipality
Newcastle Munic media briefing after the Munic paid R127 396 062.71 in full settlement of the R 342 414 237.95 overdue debt it owed Eskom. Image: Twitter/@Eskom_SA

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KZN: Newcastle Municipality settles debt with Eskom

Power utility Eskom, has praised Newcastle Municipality in settling it’s debt in full. The Municipality paid a settlement fee of over R127million with a month to spare. ALSO READ: From Eskom to Rand Water – City of Tshwane ‘drowning’ in debt SETTLEMENT AGREEMENT WAS FACILITATED THROUGH COGTA KZN Eskom says the amount paid over by the municipality […]

11-07-23 19:09
Newcastle Municipality
Newcastle Munic media briefing after the Munic paid R127 396 062.71 in full settlement of the R 342 414 237.95 overdue debt it owed Eskom. Image: Twitter/@Eskom_SA

Power utility Eskom, has praised Newcastle Municipality in settling it’s debt in full. The Municipality paid a settlement fee of over R127million with a month to spare.

ALSO READ: From Eskom to Rand Water – City of Tshwane ‘drowning’ in debt

SETTLEMENT AGREEMENT WAS FACILITATED THROUGH COGTA KZN

Eskom says the amount paid over by the municipality is the largest settlement amount it’s received by a large margin.

“Eskom is grateful for the thorough way the Municipality has conducted itself during the tenure of the debt.  This is evident of the fact that the payment arrangement has been settled ahead of the targets of the agreement” says Eskom’s Industry Support Management, Joyce Zingoni.

ALSO READ: Helicopter crash claims three lives in DR Congo

MUNICIPALITY SETS THE BAR HIGH

General Manager Central East Cluster, Agnes Mlambo lauded the Municipality for being proactive in the commitment in settling the debt and wished other municipalities could follow suit.

“The Municipality communicated any concerns and challenges proactively to Eskom and this in turn allowed for further discussions to keep the payment arrangement conditions intact” says Mlambo.

ALSO READ: Shocking move: Eskom exempted from disclosing financial losses

Eskom says the settlement allows the entity to be self sustainable as costs of electricity generation, transmission and distribution to be recovered.

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