Eskom halts power supply interruptions after partial payment by City of Joburg and City Power, with a further commitment to settle outstanding debt.
Joburg residents can breathe a sigh of relief after Eskom decided to suspend its notice of potential power interruptions to the City of Joburg (CoJ) and City Power. This suspension comes after the two entities made a partial payment of R1.3 billion, though they still owe Eskom a substantial amount. The suspension follows Eskom’s previous warning of scheduled power cuts to Joburg and its utility arm, City Power, due to unpaid bills.
Eskom’s Power Cut Threat:
Last month, Eskom served a notice of intention to interrupt the power supply to Johannesburg, citing an outstanding debt of R4.9 billion owed by CoJ and City Power. The debt excluded a separate amount of R1.4 billion that became due at the end of November 2024. This action was part of Eskom’s efforts to collect overdue payments and ensure continued power supply.
Minister Ramokgopa’s Intervention:
In response to the situation, Minister of Electricity and Energy, Kgosientsho Ramokgopa, intervened to resolve the issue. He helped facilitate an agreement between Eskom, the CoJ, and City Power. The deal included the appointment of an independent expert to investigate alleged historical overbilling by Eskom amounting to R3.4 billion.
Payment Details and Suspension of PAJA Notice:
As a result of these negotiations, the City of Johannesburg made a commitment to pay R1.4 billion of its outstanding debt by the end of November 2024. However, as of early December 2024, they had paid only R1.3 billion, falling short of the full agreed amount. Eskom, in turn, suspended its Promotion of Administrative Justice Act (PAJA) notice that had warned of possible power interruptions, allowing the process led by Minister Ramokgopa to continue.
Deadlines and Further Commitments:
Eskom confirmed that the City of Joburg and City Power had made the initial payment of R1.3 billion, but they still have the October 2024 invoice of R1.3 billion unpaid as of November 29, 2024. The entities have committed to making an additional payment by December 6, 2024. Eskom has extended the deadline for the submission of the independent report into the overbilling dispute, which is now expected by December 6, 2024.
While Eskom’s power interruption threat has been temporarily suspended, the City of Joburg and City Power must continue to meet their financial obligations and work with Eskom to settle the remaining debt. As Eskom waits for the independent expert’s findings, the resolution of this dispute will have significant implications for electricity supply and the financial stability of the city’s power utilities.
Also read: Midvaal Plans to Replace Eskom with Private Electricity Provider Because of Rising Debt Concerns
