The City of Tshwane has made inroads in settling its long-standing Eskom debt, having paid over R1 billion towards the outstanding amount last month, reducing its total Eskom debt to R5,66bn.
This was announced by Tshwane Mayor Nasiphi Moya during a media briefing at Tshwane House on Wednesday, where she gave feedback about progress made by her administration since she assumed office in the past 175 days.
She said the dent into the city’s debt comes just three months after concluding a historic payment agreement with the power utility.
“This progress reflects our determination to meet our obligations and secure energy stability for our residents.”
She also announced that the R4.7bn VAT debt linked to the cancelled Peu smart meter contract has now been fully settled.
She said the city has made a final payment of R128 million, clearing the debt in full.
“The South African Revenue Service (SARS) has formally acknowledged the settlement. This marks a major milestone in closing a difficult chapter in the city’s financial history and demonstrates the multi-party coalition government’s resolve to clean up the past and build a sustainable future,” she said.
Two years ago, former mayor Cilliers Brink revealed that the city owed the SARS a staggering R4.7 bn in unpaid VAT and penalties, stemming from the ill-fated Peu contract, which was awarded irregularly in 2013 and later invalidated by the Gauteng High Court, Pretoria.
The contract was meant to facilitate the rollout of smart meters through Peu Capital Partners.
Under Moya's administration, the city's debtors' book has seen a huge reduction, from nearly R30bn to R25,69bn as of March 31, 2025.
She attributed the progress to intensified revenue collection efforts, including the Tshwane Ya Tima campaign and the debt relief scheme approved by the council.
Moya said the city's debt relief programme made strides with R2,42bn written off from registered indigent accounts and an additional R1.83bn cleared from over 31 500 inactive accounts.
The city has received an overwhelming response to its debt relief scheme, with over 10 200 applications submitted so far.
To accommodate even more residents, Moya said, the executive will request a three-month extension of the scheme from the council during a special sitting on Thursday, pushing the new deadline to May 31, 2025.
“By doing so, the standard R29 000 tamper fee will be waived — allowing customers a chance to regularise their supply and avoid further penalties,” she said.
Recently, various areas of the city have experienced recurring power outages, severely impacting local businesses and disrupting daily life for residents.
Moya said Soshanguve and Queenswood have been the hardest hit by power outages.
“In our commitment to being a responsive government, we are pleased to announce that refurbishments to IA Substation in Soshanguve have been completed following years of unreliable power supply that has adversely affected that area. The reticulation of the electricity is under way, and we are confident that the area will have its electricity fully restored in the next two weeks. The original deadline for completion was set for the end of April,” she said.
In Queenswood, the primary cause of the extended power outage was 17 identified cable faults, but power has since been restored in the entire area.
Moya also gave an update about the project to deliver water to Hammanskraal residents. “Due to several delays in the rollout of the Klipdrift Project, Magalies Water has revised the completion date for Module Two to the end of April,” she said.
She added that the mayoral executive will hold a public meeting in Hammanskraal with affected residents to give them an update on the progress and to ensure that residents are kept fully informed about the delays.