Utility, Newcastle finally make peace
The municipality and the utility have agreed to each pay its own legal costs, and as long as the municipality pays its monthly Eskom debt, the lights will stay on despite a R200 million debt.
Eskom and Newcastle municipality seem to have made peace, but there is one thorny matter yet to be resolved – who is going to pay the steep costs incurred by this high court civil litigation?
In order make this decision, Judge Elsa Bezuidenhout is likely to consider who is to blame for Newcastle’s escalating Eskom debt landing in court, when all the parties involved ended up resolving the matter among themselves reports Newcastle Advertiser.
There is no need for Newcastle’s ratepayers to ponder the question too deeply, since they will be footing the municipality’s bill anyway. Advocate Joseph Nxusani informed Judge Bezuidenhout on Wednesday that Newcastle Municipality and Eskom have agreed to each pay its own legal costs.
It was Newcastle municipality that took Eskom to court in a desperate bid to stop the energy provider from switching off power due to the non-payment of more than R200 million debt.
– Caxton News Service