JOHANNESBURG - The City of Johannesburg has dismissed concerns about potential power disruptions as it works to settle more than R5.2 billion owed to Eskom.
Mayor Dada Morero has assured residents that there will be no power cuts in the city.
He, alongside Electricity Minister Kgosientsho Ramokgopa, met with Eskom CEO Dan Marokane as City Power works to settle its debt.
Municipal debt to Eskom has soared to R114-billion.
Despite government interventions and repayment plans, Johannesburg, the country’s economic hub, has failed to settle its Eskom bill.
Now, Ramokgopa says technical support will be needed to keep the lights on in Johannesburg.
"As part of the reform agenda, they have already committed that by the end of July there will be a ring-fenced account for city utilities. This is intended to create transparency regarding where revenue collection is directed, ensuring that funds are invested into refurbishment, reticulation and the distribution of core assets," Ramokhopa said.
The metro has already defaulted on at least one Eskom payment this financial year.
Mayor Dada Morero blames declining revenue.
"We have experienced electricity losses, both technical and non-technical, and this has had a direct impact on revenue collection. What you purchase versus what you are able to recover does not always balance out as required. This has affected our spending capacity and, in turn, our ability to meet our financial obligations to Eskom," Morero explained.
He said at the beginning of the year, there was also a decline in revenue, which contributed to the City's inability to honour repayments to Eskom.
"We want to assure all our customers that there will be no power shutdown in Johannesburg. This meeting was aimed at finding a solution.”
While officials insist the lights will stay on in the metro, growing concerns remain that unresolved municipal debt to Eskom could threaten the utility’s financial sustainability and its ability to maintain the national grid.
Report by Naomi Kobbie