Electricity Minister Kgosientsho Ramokgopa said Eskom is examining a direct role in collecting revenue from Johannesburg residents. The move follows a notice from the utility threatening supply cuts over unpaid debt exceeding R5.2 billion.
On 19 May Eskom issued a formal notice warning it would reduce or terminate bulk electricity supply to parts of Johannesburg because of R5.25 billion in arrears and a further R1.58 billion due in June. The utility stated that the City of Johannesburg and City Power had repeatedly failed to honour their supply agreement.
Speaking on Radio 702 on 20 May, Ramokgopa confirmed Eskom is assessing its Distribution Agency Agreement model for the city. Under the model Eskom would install smart meters, provide technical support and collect revenue directly. He noted the approach has already been used in smaller municipalities such as Merafong City Local Municipality.
Johannesburg Mayor Dada Morero addressed the threat during his State of the City address on 20 May. He said the city would work with the minister and Salga to resolve the matter and outlined a turnaround plan for City Power together with a €200 million loan from German development bank KfW for energy projects.
The Organisation Undoing Tax Abuse called on Eskom to intercept revenue streams rather than interrupt supply to paying customers. Outa executive manager Julius Kleynhans said residents continue to pay their bills yet the funds are not reaching the utility.