The city said it is consulting with its legal team to consider legal options to prevent power supply interruptions. (File photo: Kaya Coco)
City Power and the City of Johannesburg (CoJ) late on Thursday issued notice that Eskom would cut power to some areas of Johannesburg at pre-determined times due to an ongoing dispute over R4.9 billion in arrears. He harshly criticized what he had done. .
The city said Eskom's intentions – which also released a statement on Thursday night – were “unjustified, counterproductive and potentially harmful to Johannesburg residents and businesses”.
Eskom said CityPower had a debt of R4.9 billion, excluding a current account balance of R1.4 billion due at the end of November.
However, the city says it is in a dispute with the national power company over overcharges of more than R3.4 billion.
The city claims Eskom has failed to provide clarity on the amount of the disputed bill, forcing it to consider legal options to protect its interests.
“We urge Eskom to withdraw its public notice and engage in honest and good faith negotiations to resolve these issues constructively,” City Power CFO Tebogo Moraka said.
Mr Moraka said Eskom's “pay now, resolve disputes later” approach had exacerbated the city's financial burden.
He added that the city is consulting with its legal team to explore legal avenues to prevent power supply interruptions.
“We urge Eskom to reassess its position and work with the City to find a mutually beneficial solution. In the meantime, the City will issue a public notice within five days of Eskom’s withdrawal. We have made a formal request to do so,” Moraka said.
In a statement, Eskom cited outstanding debt and a pattern of late payments by City Power.
The state-run utility claims it issued the suspension notice under the Promotion of Administrative Justice Act (PAJA) as a final step after extensive attempts to resolve the payment dispute failed.
Eskom is responsible for ensuring affordable and reliable electricity supply to South Africa's wide population and cannot maintain outstanding debts from municipalities without impacting services to other regions. said.
“If an institution like the Ministry of Justice fails to pay Eskom on time or at all, Eskom will be forced to borrow additional funds at a premium to fund its operating costs. Instead, it should be covered by revenue from electricity sales.”
He said the PAJA process allows for formal representations and gives the City of Johannesburg an opportunity to make its case before a final decision is made.
Eskom issued a public notice on Friday “inviting all interested and affected parties to submit written representations, comments and/or submissions” setting out why the planned disruption should not proceed. He announced that he would call.
Based on the feedback it has received, Eskom has set a date of December 12, 2024, to announce whether it will continue with the blackout.
