Under the agreement, City Power will repay Eskom approximately $176 million over a four-year period. The deal also includes a provision allowing the municipal utility to suspend payments during the winter months, when electricity demand typically spikes and financial pressure mounts.

The settlement comes after a court instructed both parties to resolve the impasse through mediation, following months of disagreement over unpaid amounts.

Speaking at a media briefing in Johannesburg, Ramokgopa noted the significance of the resolution, describing the sum as “a big ticket item”.

“City Power and the City of Johannesburg have done everything possible to continue honouring their current account, despite these difficulties. While challenges can arise from one month to the next, the key issue in dispute has now been addressed through this process,” he said.

--ChannelAfrica--