Electricity Still on for Joburg Residents Amid Eskom-City Power Deal

(The Post News)- Relief for Johannesburg residents as Eskom and City Power have reached an agreement, electricity Minister Kgosientsho Ramokgopa announced on Tuesday that the two entities have agreed on R3.2 billion bill settlement.

In recent months Eskom had threatened to disconnect power for the city of Joburg residents over R4.9 billion debt. In November 2024, the minister was brought to assist with a way forward into resolving the matter

The city of Johannesburg disputed the R4.9 billion debt stating that they were only expecting to pay R1.3 billion for September 2024 invoice, the amount was later decreased to R3.4 billion, which was made up of unpaid invoices that Eskom had been making to Johannesburg.

Incorrect electricity reading during load shedding have been cited as a major cause of the city’s debt.

As part of the deal Eskom has written off R830 million of the debt. Johannesburg will now pay R3.2 billion over four years with provisions of paying R800 million annually through City Power. The agreement includes a provision to skip payments during winter months, easing financial burden during peak electricity usage.

Minister Ramokgopa said resolution process has provided the ministry with valuable insights for future municipal disputes.

” We have a template through this exercise, we have been able to determine a template on how we should be in a position to initiate a process where there’s a dispute,”

Joburg Mayor, Dada Morero reassured Johannesburg residents that they will not be directly affected by debt settlement.

“Consumers will not be affected,” he said, addressing concerns over possible tariff hikes.

He further explained that the city will settle the debt without raising electricity costs.

“This is the debt that was accumulated and we then agreed on settling it. So it doesn’t affect the tariffs moving forward.”

The minister acknowledged that City Power’s situation is not unique, highlighting that the country is faced with unaffordability of electricity.

“Electricity is unaffordable, we can’t continue along this carried path. We are getting to a situation here in the country where we see new dimensions of energy poverty,” Ramokgopa warned

Over the years, City Power has faced persistent challenges including unpaid bills, infrastructure failures, load shedding and illegal connections.