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By Palesa Matlala
- Eskom says Johannesburg and City Power owe more than R5.2-billion, with another R1.58-billion payment due on 5 June.
- Public Interest SA warned Johannesburg it has 14 days to produce a recovery plan or face possible court action over the power debt crisis.
Electricity Minister Kgosientsho Ramokgopa will on Tuesday hold crisis talks with Eskom and City Power as pressure grows over Johannesburg’s massive electricity debt.
The meeting comes after Eskom threatened to cut power supply to parts of Johannesburg because of unpaid bills running into billions of rand.
Eskom said the City of Johannesburg and City Power owe more than R5.2-billion in overdue payments. Another R1.58-billion is due on 5 June.
The power utility said it may reduce or stop electricity supply to some bulk power points because the city keeps missing payments.
“Eskom has been working with the City of Johannesburg and City Power for over two years to support the metro in meeting its payment obligations,” the utility said.
The debt figures are being disputed and the matter has already landed in court before.
Ramokgopa now wants an independent body to audit the billing figures to settle the fight over how much is really owed.
Civil society group Public Interest SA has also entered the battle. The organisation gave Johannesburg 14 days to produce a financial recovery plan or face legal action.
The group wants the city to explain how much it owes Eskom and other creditors, how it plans to repay the debt and how it will protect electricity revenue.
Public Interest SA also demanded stronger financial controls and action against officials linked to wasteful spending and misconduct.
Chairperson Tebogo Khaas warned that politicians cannot solve the crisis through talks alone.
“Public Interest SA reserves the right to approach a court of competent jurisdiction for appropriate relief,” said Khaas.
Johannesburg mayor Dada Morero said the city will work with Ramokgopa and the South African Local Government Association to fix the crisis.
“We will not fight Eskom,” said Morero.
He said City Power has already started a turnaround strategy to improve operations and finances.
The growing dispute has raised fears about electricity stability in Johannesburg, South Africa’s financial hub and home to major banks, mines and the Johannesburg Stock Exchange.
Years of power cuts have already forced many businesses and households to spend heavily on generators, solar power and backup systems.
The crisis has also exposed deeper financial problems inside the city, including concerns over whether Johannesburg can afford promised wage increases for workers.
Pictured above: The Minister of Electricity and Energy Dr. Kgosientsho Ramokgopa met with the Mayor of Joburg Mr Dada Morero and Eskom’s Group Chief Executive, Mr Dan Marokane at Megawatt Park to initiate discussions to find lasting solutions to the City’s electricity bill debt matter.
Image source: Department of Electricity and Energy
