Reply to thread

Message

[QUOTE="Munyaradzi Mafaro, post: 46010, member: 636"]
South Africa's power company Eskom and Johannesburg's City Power ended a billing fight that lasted more than ten years. The two sides agreed on a payment plan after months of talks led by energy experts. City Power will send Eskom 3.2 billion rand over four years to settle the debt. Eskom agreed to cancel 830 million rand worth of fees and interest charges. Energy Minister Kgosientsho Ramokgopa announced the deal with Johannesburg Mayor Dada Morero at a news conference.

The dispute started when Eskom said City Power owed 4.9 billion rand from past bills and another 1.4 billion rand from recent charges. Eskom threatened to cut electricity to Johannesburg last November if the debt went unpaid. The South African National Energy Development Institute helped both sides reach a solution through seven months of discussions. Officials first planned to finish talks within three weeks but needed more time to check billing records and meter readings.

City Power will make smaller payments during winter months when electricity costs more for homes and businesses. The government wants other cities with similar debt problems to use this agreement as a guide. Minister Ramokgopa said Tshwane faces comparable issues with Eskom and could follow the same process. The deal prevents court battles that could hurt both companies financially and keeps power flowing to millions of people across Johannesburg.
[/QUOTE]

Name