Tshwane: R950m to get out of meter contract

Tshwane could have chosen to manage its own smart electricity meters at a cost of about R11 million a year, but instead insisted on paying 70 times this amount to a contractor – and is now paying R950 million to get out of the contract.

This payment will be made shortly before a new council is elected, business rights group AfriSake alleges in court papers filed in the North Gauteng High Court in Pretoria.

This cancellation payment is over and above an amount of “at least R2.2 billion” that Tshwane has already paid to the operator by selling electricity at a loss, according to the DA.