ESKOM and City of Johannesburg Dispute Over Pending Electricity Bill Escalates

(3 Minutes Read)  

Ramokgopa did not make the report public or share its findings with stakeholders, including Johannesburg residents and businesses. This lack of transparency has led to frustration and uncertainty.

The long-standing dispute between Eskom and the City of Johannesburg (CoJ) over unpaid electricity bills has reignited. Eskom is threatening to resume power cuts due to arrears incurred by the latter. Negotiations to resolve the vexed problem are eluding a solution.   An independent report commissioned is also delayed.

In November 2024, Eskom issued a notice of intention to interrupt the power supply to Johannesburg, citing an outstanding debt of R4.9 billion in arrears and an additional R1.4 billion in current charges. The CoJ and its electricity distributor, City Power, contested the charges, alleging overbilling of more than R3.4 billion.

Electricity and Energy Minister Kgosientsho Ramokgopa intervened to resolve the problems. An agreement was reached to appoint the South African National Energy Development Institute (SANEDI) to assess the disputed amounts. The report was initially expected by 25 November 2024.

The SANEDI report was only submitted to the minister approximately four months later. However, Ramokgopa did not make the report public or share its findings with stakeholders, including Johannesburg residents and businesses. This lack of transparency has led to frustration and uncertainty.

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.

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Stakeholders are urging 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.