The City of Johannesburg has struck a crucial agreement with Eskom, committing to pay R1.4 billion of its outstanding electricity debt by the end of the month to prevent an impending power cut. This settlement, announced by Electricity and Energy Minister Kgosientsho Ramokgopa, aims to address Eskom’s recent warning about potentially suspending the city’s electricity supply due to the unpaid bills.
Ramokgopa, alongside Johannesburg Mayor Dada Morero, detailed the city’s repayment commitment at a media briefing held on Monday. The agreement includes City Power, Johannesburg’s power distribution company, pledging to settle its current account with Eskom to ease tensions and secure continued power supply.
“We have agreed that City Power will pay the current account,” Ramokgopa confirmed, emphasizing the importance of managing the city’s debt to ensure uninterrupted electricity service for Johannesburg residents.
The meeting between Ramokgopa and City of Johannesburg officials followed a public dispute, highlighting the city’s ongoing financial challenges with its electricity supplier. According to Eskom, the City of Joburg and City Power currently owe a substantial R4.9 billion in unpaid bills. Furthermore, Eskom indicated that an additional payment of R1.4 billion is due by the end of November, pushing the city’s total outstanding balance to a staggering R6.3 billion.
This agreement marks a temporary relief for Johannesburg’s power concerns, yet the city’s sizable debt remains a pressing issue that will require sustainable financial strategies to manage.
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