Eskom has applied to the Gauteng High Court in Johannesburg for a declaratory order to force City Power to pay its debt of R1 billion.
Eskom says City Power started to default on its payments from October last year.
City Power declared a dispute regarding potential overbilling on bulk purchase invoices dating back to 2021.
However, Eskom says it opposed these claims and will prove its position through the arbitration process.
The case has been enrolled for hearing in June this year.
Eskom Gauteng spokesperson Amanda Qithi says the power utilitys financial viability is being threatened by this dire situation.
The debt owed by City Power has reached unprecedented levels, exacerbating Eskoms already strained financial situation. This dire situation not only undermines Eskoms financial sustainability but also threatens its ability to maintain essential infrastructure, invest in new technologies and meet the growing energy demands of the province. In terms of the electricity supply agreements sanctioned by the Electricity Regulation Act of 2006, if a municipality raises a dispute with Eskom, it must still pay. The dispute does not absolve it of its legal obligations to pay Eskom for the bulk electricity it has received.
