Thokozile Mnguni
Some good news for residents and businesses in Johannesburg. Electricity supply has been secured after Eskom, the City of Johannesburg, and City Power reached an agreement over the municipality’s mounting debt, easing fears of possible power interruptions in the metro.
Electricity and Energy Minister Kgosientsho Ramokgopa announced the breakthrough after talks with Johannesburg Mayor Dada Morero and Eskom Group Chief Executive Dan Marokane.
The deal follows Eskom’s warning last week that electricity supply to parts of the city could be reduced or interrupted due to arrears of about R5.2 billion owed by the municipality and City Power.
“I’m delighted to say that we have found a path to resolve this problem,” Ramokgopa said.
He said Eskom and the City had already entered into an electricity supply agreement about two years ago to manage the debt burden, but financial and operational pressures on the municipality late last year and earlier this year made it difficult to keep up with payments.
“What we have agreed reaffirms the provisions of the existing agreement which says we need to keep up with the current account and find a way of servicing the debt that has now grown,” he said.
Ramokgopa stressed that Johannesburg’s economic importance made it critical to avoid disruptions.
“Johannesburg is just too big to fail. It is the powerhouse of the South African economy and the epicentre of the financial markets in the country and across the continent,” he said.
He added that Eskom and the City would intensify coordination to improve operational efficiency and ensure that paying customers are not negatively affected by the dispute.
“There are a lot of customers who are paying, and it would be particularly unfair for those customers to be collateral damage, so we need to find a solution,” he said.
The agreement brings relief to residents and businesses who had faced uncertainty over possible blackouts if Eskom proceeded with its earlier warning.
The deal also comes against the backdrop of ongoing electricity enforcement and financial pressure within the municipality.
Yesterday, City Power disconnected a City of Johannesburg building after it fell into arrears of R2,944,508.94, with Mayor Dada Morero confirming the action.
Morero said the building was in a severe state of neglect, citing poor maintenance, non-functioning lifts, peeling paint, structural damage, unsafe fire escapes and broken windows. He also raised concerns about overcrowding and poor ventilation, saying conditions posed serious health and safety risks.
City officials say such disconnections form part of a broader enforcement drive targeting non-paying properties and unsafe buildings. In previous operations, City Power disconnected seven hijacked buildings in the CBD during joint enforcement actions with law enforcement agencies across Braamfontein, Hillbrow and Doornfontein.
Some buildings have been reconnected illegally, pointing to organised networks linked to hijacked properties in the inner city, where rental income is collected while municipal services are bypassed.
City Power says it will continue enforcement operations to recover revenue and curb illegal electricity use, while the municipality remains under pressure over its growing debt to Eskom.