Minister of Electricity and Energy Kgosientsho Ramokgopa says the lights will stay on in Johannesburg this December after the city’s power utility agreed to pay Eskom an outstanding bill of R1.4 billion.
Eskom published a notice last Thursday warning that electricity supply to Johannesburg would be disrupted because City Power owed it R4.9 billion in historic debt – and R1.4 billion on its current account which is payable at the end of November 2024.
Promise to pay Eskom
But City Power hit back with a statement later that same night, alleging that meter readings were not in line with what Eskom had billed it for.
The entities have now agreed to drop their legal dispute.
A different solution will come into play regarding the city’s historic debt, although Johannesburg Mayor Dada Morero vowed on Monday to resolve the city’s full R6.3 billion debt dispute with Eskom within the next 14 days.
Watch this space!
The parties agreed to the following:
- A new process will not begin. “The issue has been made plain. We need an independent person to evaluate what Eskom is asking versus what the City believes it owes,” Ramokgopa said.
- The independent technician will be accompanied by a technician from each entity. The City has 14 days (until 25 November) to confirm what it owes.
- City Power has agreed to pay its current account of R1.4 billion which is payable at the end of the month
- There has been an agreement “to use all platforms” to communicate to residents, businesses, and investors that no crisis is looming
The resolution – in the interim – means that the immediate concern – that power might be disrupted in South Africa’s richest city – has been resolved, and that residents, businesses and other stakeholders can rest assured that the lights will stay on over the upcoming festive period.
How worried are you that you’ll be cooking Xmas lunch in the dark?
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