Util­ity, New­cas­tle fi­nally make peace

The Citizen (KZN) - - News - Estella Naicker

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

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