On Monday, the City of Johannesburg’s leadership addressed the growing concern over Eskom’s recent notice to cut off power supply to the city due to unpaid debt.
Story Summary:
- City of Joburg leadership addressed Eskom’s debt notice, assuring residents that electricity interruptions are not imminent.
- Eskom alleges City Power owes nearly R5 billion, which it claims the city has refused to pay due to billing disputes.
- City leaders have committed to resolving the debt dispute with Eskom by 25 November, as both parties explore legal and negotiation options.
City of Joburg assures residents Eskom blackout not on the cards
Executive Mayor Dada Morero and City Power executives held a press briefing to reassure residents that the city is working with Eskom to resolve the debt dispute, and immediate power interruptions are not anticipated.
Mayor Morero clarified that while there is an outstanding debt issue with Eskom, the city is not on the verge of an electricity blackout.
“We have 14 days to attend to the dispute with Eskom,” Morero stated, promising an update by Monday, 25 November 2024.
Morero stressed that plans are in place to secure Johannesburg’s electricity supply, and residents can expect uninterrupted services as negotiations continue.
The City of Joburg’s debt to Eskom reportedly stands at almost R5 billion, with an additional R1.4 billion due by the end of November.
Eskom had warned that failure to settle this debt might force it to begin interrupting power supply to Johannesburg, prompting City Power to respond swiftly.
Why Eskom threatened to pull the plug on Johannesburg
Eskom’s recent notice, served under the Promotion of Administrative Justice Act (PAJA), accuses the City of Johannesburg and its power provider, City Power, of failing to meet their financial obligations.
Eskom argues that municipal debt across South Africa, totalling nearly R90 billion, has put unsustainable financial pressure on the utility.
The state-owned utility, in a statement released last week, expressed frustration, stating:
“Despite all avenues that Eskom explored… [City of Joburg’s] continued non-payment has left Eskom unable to accommodate them further without harming its own business.”
According to Eskom, the city’s alleged refusal to pay the full amount is rooted in disputes over “overbilling” claims.
In its defence, the City of Joburg maintains that these billing issues amount to R3.4 billion and have yet to be addressed by Eskom, despite ongoing appeals and regular communications.
City officials argue that Eskom’s “pay now, dispute later” policy is unfair and risks further burdening Johannesburg’s financial stability.
During the briefing, Minister of Electricity and Energy Dr Kgosientso Ramokgopa supported the city’s approach to engage with Eskom in finding a solution.
He highlighted that the debt problem is not exclusive to Johannesburg, as other municipalities are facing similar issues.
Ramokgopa said:
“This is not a City of Joburg issue alone… We hope that resolving this will provide a framework for other metros.”
The City of Joburg has also urged Eskom to enter “genuine, good-faith negotiations” to resolve these disputes, calling on the utility to retract the public notice that warns residents of possible power cuts.
City Manager Floyd Brink added that legal options are being considered to prevent service disruptions while discussions proceed.
According to Eskom, public input will be accepted until 12 December 2024, when a decision will be made regarding potential electricity supply interruptions.
City of Joburg officials remain steadfast, stating they are “exploring all legal avenues to prevent disruptions.”
