Newcastle settles 'largest' municipal overdue debt at Eskom
Eskom says it hopes other municipalities who are in debt to it, will learn from the Newcastle Local Municipality.
"Eskom is pleased to announce that on 5 July 2023 received a payment of R 127 million from Newcastle municipality. It is worth noting that this marked milestone at Eskom," says senior manager in customer services, Gugulethu Duma-Kude.
"In making this payment, Newcastle Municipality settled that overdue debt and at Eskom, this marked the largest settlement of overdue municipal debt."
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The northern KZN town has cleared its massive debt with the power producer, freeing itself from a long-standing burden.
In 2019 Eskom issued a notice threatening to disconnect the town's power supply before an agreement for monthly payments was reached.
"Payment arrangements have been settled ahead of the target on 5 July, whereas the agreement of the terms of pay arrangements was 15 August 2023."
