Lights stay on in Joburg
Energy minister Kgosientsho Ramokgopa says the lights will stay on in Joburg in December after the city’s power utility agreed to pay Eskom an outstanding bill of R1.4 billion.
The national power utility threatened to cut off Joburg’s power supply last week, starting around mid-December, if the city refused to pay its bills.
According to Eskom, the City of Joburg has an outstanding debt of about R4.9 billion, as well as a
current account of R1.4 billion, which will become due and payable at the end of November 2024.
Ramokgopa said that the city’s refusal to pay the current account triggered Eskom’s threat to disrupt power—but now that the city has agreed to pay, the threat can be withdrawn.
However, a different solution will come into play regarding the city’s historic debt.
The dispute between CoJ and Eskom is rooted in the city’s view that the utility’s billing is incorrect and that it has been overcharging it for power.
While a dispute process was launched around this, the city was offsetting its bills by what it believed to be the overcharged amount, leading to the piling debt.
Eskom, supported by the country’s courts, said the city is obligated to pay the full amounts, with any credit due—if it ends up being the case—delivered once the billing matter is resolved.
Rampkgopa has doubled down on this approach, saying the ‘user-pays’ principle does indeed hold in this case.
Others, like civil group Outa, pointed out the irony in the city’s approach, given that it enforces that exact same approach with its customers.
Regardless, the minister said that the state would intervene in the investigation of the billing issue by bringing an independent assessor to do a technical assessment of the problem. They will be accompanied by experts from Eskom and City Power to ensure a factual assessment is given.
This assessment should be done and concluded by November 25, where a final decision will be reached. The minister said that both parties have agreed to abide by the findings in full, whatever the outcome.
Ultimately, however, the minister said 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.
Loading ...
