War brewing in South Africa’s largest city
A legal battle is brewing over Eskom’s threat to interrupt electricity supply to South Africa’s largest city.
Civil society organisation, the Organisation Undoing Tax Abuse (OUTA), is preparing legal action as uncertainty continues over whether Johannesburg’s debt dispute with the power utility has actually been resolved.
Recent announcements have created the impression that Eskom and the City of Johannesburg had reached an agreement over the city’s multibillion-rand debt.
However, Eskom has confirmed that its formal process to interrupt electricity supply remains active because there is no tangible evidence that a final settlement has been concluded.
According to Eskom, the Promotion of Administrative Justice Act (PAJA) process that would enable electricity supply interruptions is still underway, despite widespread public perception that the matter has been settled.
The utility said it intends to continue with the process and is preparing to enforce existing court judgments against the City of Johannesburg.
Eskom has already started taking action by disconnecting certain streetlights because of non-payment.
The ongoing uncertainty has prompted the Organisation Undoing Tax Abuse (OUTA) to seek legal advice on possible court action aimed at protecting residents and businesses from the consequences of the dispute.
“Whilst the public engagement process continues, we believe that this may require legal intervention to ensure residents and business interests are protected.”
“We need to make sure that the customers of CoJ don’t become collateral damage,” said Adv. Stefanie Fick, Executive Director of OUTA’s Accountability Division.
OUTA has called on Eskom to publicly clarify the status of negotiations with the City of Johannesburg and to confirm that the notice of intention to interrupt supply remains in force.
It has also asked to extend the public comment deadline by 30 days and to make any agreement between Eskom and the city publicly available.
Julius Kleynhans, Executive Manager at OUTA, warned that residents are already experiencing the effects of the dispute, with darkened streets due to disconnected streetlights.
“Darkened streets raise concerns around public safety, security, and mobility. These are not abstract financial disagreements taking place in boardrooms,” he said.
“They are decisions with real-world consequences for people who depend on functioning public infrastructure every day.”
Residents should not bear the consequences
OUTA also stressed that ordinary residents and businesses who pay their municipal accounts should not bear the consequences of governance failures.
“The debt crisis was not created by ordinary residents who pay their accounts every month,” said Kleynhans.
“Those responsible for managing electricity revenues and ensuring Eskom is paid must be held accountable, but compliant consumers cannot continue to carry the consequences of government failures.”
He added that any interruption to electricity supply in Johannesburg would have consequences far beyond individual households.
This includes consequences that will affect businesses, employment, healthcare facilities, schools, telecommunications, water services, public safety and investor confidence.
The legal uncertainty comes despite Electricity and Energy Minister Kgosientsho Ramokgopa announcing last week that City Power had agreed to pay R3.2 billion in disputed debt to Eskom over four years following talks between the parties.
“Johannesburg City Power will pay the R3.2 billion over a period of four years,” Ramokgopa said, adding that the city had continued paying its current electricity account despite its financial challenges.
However, the Democratic Alliance (DA) said the agreement has not answered key questions surrounding the city’s growing Eskom debt.
The party accused the government in Johannesburg of executive failure and argued that residents continue paying for electricity while Eskom remains unpaid.
It has launched a petition calling for full transparency on the debt, disclosure of the city’s recovery plan and assurances that residents will be protected from electricity interruptions.
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