Johannesburg’s executive mayor Dada Morero and electricity minister Kgosientsho Ramokgopa announced a partnership between City Power and Eskom on Tuesday to service the city’s R5.2 billion debt while preventing power cuts.
The agreement follows Eskom’s recent notice threatening to interrupt electricity supply over the unpaid amount. Morero stated after the talks, “There will be no switching off of power.”
Under the preliminary Distribution Agency Agreement, Eskom will provide technical support to reduce losses and ringfence electricity revenues starting in July. Details are to be finalised by the end of the week.
Ramokgopa said the arrangement is intended to build municipal capacity rather than act as a takeover, with Eskom exiting within a maximum of 36 months. He expressed confidence that Johannesburg will have electricity through the winter.
Eskom is owed R130 billion by municipalities nationwide. The City of Johannesburg also faces an infrastructure backlog exceeding R220 billion.