The Minister of Electricity and Energy, Dr. Kgosientsho Ramokgopa, alongside Johannesburg’s Executive Mayor, Cllr. Dada Morero, addressed the media today at the Johannesburg Theatre, unveiling a significant resolution to an ongoing financial dispute between Eskom and City Power.
The settlement marks a crucial step in solidifying the city’s financial stability and restoring trust with Eskom, the national power supplier.At the press briefing, Mayor Morero confirmed that the City of Johannesburg has agreed to clear a substantial R3 billion debt owed to Eskom, of which R830 million has been graciously written off as part of the resolution process.
Morero expressed optimism about the agreement, stating, “We are currently paying our current account with no issues, so we’ll be able to afford to pay the settlement agreement over four years.
”The financial strain caused by unpaid electricity bills had placed immense pressure on both the city’s budget and Eskom’s operations, with the fallout impacting service delivery. The new settlement, facilitated through the South African National Energy Development Institute (SANEDI), is intended to streamline payments and restore efficient energy supply to the citizens of Johannesburg.Morero acknowledged that the city’s commitment to regular payments had proven vital in reaching this agreement and is a testament to Johannesburg’s proactive approach to resolving the crisis.
By committing to an affordable payment schedule, officials are hopeful for improved collaboration with Eskom moving forward.The announcement comes at a critical time as municipalities throughout South Africa grapple with ongoing energy woes, and is seen as a decisive move that could inspire similar negotiations in other cities facing energy debts.
Dr. Ramokgopa lauded the agreement as a “win-win solution” that supports both the financial health of the City of Johannesburg and Eskom’s viability.As the city prepares to execute this debt repayment plan, residents and businesses alike will be looking closely to see how these developments will affect electricity reliability and urban service delivery in the coming years.