- The long-standing dispute between Eskom and the City of Johannesburg over unpaid electricity bills has reignited, with Eskom threatening to resume power cuts due to non-payment of arrears.
- This development comes after months of stalled negotiations and a delayed independent report intended to resolve the metering and billing disagreements.
Background of the dispute
In November 2024, Eskom issued a notice of intention to interrupt power supply to Johannesburg, citing an outstanding debt of R4.9bn in arrears, and an additional R1.4bn in current charges. The City of Johannesburg and its electricity distributor, City Power, contested the charges, alleging overbilling of more than R3.4bn.
In response, Minister of Electricity & Energy, Dr. Kgosientsho Ramokgopa, intervened, and an agreement was reached to appoint the South African National Energy Development Institute (SANEDI) to conduct an independent assessment of the disputed amounts. The report was initially expected by 25 November 2024.
Delays and renewed tensions
Despite the agreement, the SANEDI report was only submitted to the Minister approximately four months later. As of now, Minister Ramokgopa has not made the report public or shared its findings with stakeholders, including Johannesburg residents and businesses. This lack of transparency has led to frustration and uncertainty.
An informed source, speaking on condition of anonymity, stated: “City of Johannesburg has gone a full 360 degrees. We are back where we started. City Power and City of Johannesburg have not paid and are not going to pay. So, we are triggering the original action.”
Implications for Johannesburg
The potential resumption of power cuts poses significant risks for Johannesburg, South Africa’s largest metropolitan municipality and economic hub. Previous threats of power interruptions in November 2024 had targeted key areas, including the Johannesburg CBD, Midrand and Cresta, raising concerns about the impact on businesses and residents.
Eskom maintains that the City Power’s failure to pay its Eskom electricity bills hampers the utility’s ability to provide reliable power and exacerbates its financial challenges. As of September 2024, municipal debt to Eskom stood at R90bn, with Johannesburg being a significant contributor.
Calls for transparency and resolution
Stakeholders are urging Minister Ramokgopa to release the SANEDI report and provide clarity on the way forward. The lack of communication on the dispute has left residents and businesses in a state of uncertainty, with potential power cuts looming. The situation underscores the need for effective intergovernmental collaboration and timely resolution of disputes to ensure uninterrupted power supply and economic stability.
This is a developing story. Further updates will be provided as more information becomes available.
Author: Chris Yelland – MD – EE Business Intelligence
Chris is an internationally respected energy analyst, consultant and electrical engineer. He is considered an expert on the South African energy market. This article was originally published by EE Business Intelligence and republished with permission.
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