Joburg Challenges Eskom’s Power Disruption Threat Over R4.9 Billion Debt

The City of Johannesburg, alongside City Power, has issued a strong rebuttal to Eskom’s recent threat to interrupt its power supply, demanding that Eskom retract this notice within five days. This escalation follows claims by Eskom that Johannesburg owes a staggering R4.9 billion, with an additional R1.4 billion due by the end of November 2024.

Eskom’s Claims and the Dispute Over Billing

Eskom’s accusations include claims of Joburg’s overdue debt, yet it acknowledges an ongoing billing dispute over “certain supply points.” While the City of Johannesburg argues that the outstanding debt includes overbilling issues that remain unresolved, Eskom states that Joburg’s assertions lack adequate substantiation and that the metro has not adhered to an agreement on debt repayment.

However, Johannesburg’s representatives argue that Eskom has not provided clarity on the disputed charges, leading the city to seek legal assistance. According to the City of Johannesburg, Eskom has overbilled by R3.4 billion, an amount that has been the subject of a pending appeal and consistent monthly declarations since July 2024.

City of Johannesburg’s Response and Commitment to Residents

In a joint statement, the City of Johannesburg and City Power expressed their concerns, calling Eskom’s actions “unjust, counterproductive, and potentially harmful to Johannesburg residents and businesses.”

Tebogo Moraka, group chief financial officer of the City of Johannesburg, reaffirmed the city’s commitment to ensuring a reliable power supply for its citizens. “We urge Eskom to retract its public notice and enter good-faith negotiations to resolve this matter constructively,” said Moraka.

Joburg’s Demand for Fair Resolution

The City of Johannesburg criticized Eskom’s “pay now, dispute later” approach and pointed out Eskom’s consistent disregard for the Intergovernmental Relations Framework (IGR), which could facilitate the resolution of disputes between government entities. Joburg has also engaged its legal counsel to explore all possible avenues to prevent disruptions to the city’s electricity supply.

Joburg’s leadership emphasized the importance of reliable services for its residents and stated it would take any measures necessary to protect their rights. “The people of Johannesburg deserve reliable and efficient services, and we will not let Eskom’s actions compromise their well-being,” the city said.

The Way Forward: Joburg’s Stand for Accountability and Resolution

In the meantime, Joburg has issued an official request for Eskom to retract its notice within five days, urging the utility to address disputes collaboratively and transparently. The city remains open to working with Eskom toward a mutually beneficial outcome, advocating for transparency and good-faith negotiation as essential to resolving these issues.

The City of Johannesburg’s unwavering response showcases its commitment to shielding its residents from disruptions and highlights the importance of accountability and constructive dialogue in handling complex municipal matters.