Staff Reporter
City Power has committed to settling its current account with Eskom, prompting the utility to withdraw its notice to cut electricity supply to Johannesburg.
Minister of Electricity Kgosientsho Ramokgopa, who mediated the resolution on Monday, said that ongoing discussions will address City Power’s historic debt and billing disputes.
The city’s executive mayor, Dada Morero, led a delegation to meet with Ramokgopa intended to avert the impending power disruption.
City Power reportedly owes Eskom R4.9 billion in historic debt, along with R1.4 billion on its current account.
As part of the resolution, City Power and Eskom agreed to appoint an independent technician to verify billing discrepancies.
Ramokgopa highlighted the broader issue of municipal debt to Eskom, now totaling R90 billion nationwide.
Morero confirmed that the city’s R6.3 billion debt issue with Eskom is expected to be resolved within two weeks, as Joburg and City Power explore legal measures to safeguard the city’s power supply.
However, the Democratic Alliance has criticized Mayor Morero for delayed action and financial mismanagement at City Power.
The party called for an investigation by National Treasury and the Auditor-General into alleged Municipal Finance Management Act violations at the utility.
According to the DA, City Power’s debt is partly due to unbudgeted salaries and an overdraft ballooning to R16.255 billion by September, far exceeding the reported R671 million at the end of the previous fiscal quarter.
The DA insists residents should not bear the cost of City Power’s mismanagement and has submitted a Promotion of Access to Information Act (PAIA) application to uncover the utility’s financial practices, which remains unanswered after a year.
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