JOHANNESBURG - The City of Johannesburg and City Power have fully settled R5.25 billion in overdue electricity debt owed to Eskom.
The payment resolves long-standing billing disputes between the City and the power utility.
Eskom said it has received the final payment of R5.25-billion and has withdrawn the Promotion of Administrative Justice Act (PAJA) process it started in May over the outstanding arrears.
COJ mayor Dada Morero said it would keep future Eskom accounts up to date while also working to reduce electricity losses caused by theft and vandalism.
“This is a significant milestone in the City's journey towards financial sustainability and responsible governance.
"Settling the R5.25 billion overdue debt demonstrates our commitment to honouring our obligations while protecting Johannesburg's residents and businesses from disruptions to electricity supply.
"We remain committed to maintaining current payments, reducing electricity losses through theft and vandalism, investing in critical electricity infrastructure, and working closely with Eskom to build a more reliable and sustainable energy future for our city," Morero said.
The Department of Electricity and Energy said the settlement follows mediation between the City, City Power and Eskom and it forms part of efforts to protect electricity supply in Johannesburg.
“We are pleased to see this matter reach a definitive conclusion," said Minister of Electricity and Energy, Dr. Kgosientsho Ramokgopa
"This resolution reinforces the effectiveness of the Inter-Governmental Relations (IGR) model we have championed. By maintaining an open dialogue and a structured task team, we have ensured that the residents and businesses of Johannesburg continue to receive an uninterrupted power supply while safeguarding the financial sustainability of our national utility.”