One company fails to pay Eskom for R4 billion of electricity every year

• City Power fails to pay Eskom R3 billion to R4 billion in electricity every year due to its mismanaged billing system and inability to collect revenue.
• The utility does not generate its own electricity, with it operating as an electricity distributor rather than a primary bulk power generator. It buys electricity in bulk from Eskom and independent power producers, which it then distributes across its 19,000 km network of power lines to customers.
• The primary issue at City Power is the collapse of its revenue collection mechanisms, particularly its billing system.