City of Johannesburg Rejects Eskom’s Power Cut Threat Over R4.9 Billion Debt Dispute

The City of Johannesburg (CoJ) and City Power have jointly demanded that Eskom retract its recent notice threatening to cut off Johannesburg’s power within five days. Eskom claims the City owes R4.9 billion, excluding an additional R1.4 billion balance due at the end of November. This standoff comes as both parties dispute overbilling claims, with Joburg questioning Eskom’s billing practices and committing to legal action if necessary.

City’s Stance on the Debt and Billing Dispute

In response, the City of Johannesburg condemned Eskom’s announcement as “unjust” and “counterproductive,” highlighting that any disruptions would negatively impact the city’s residents and businesses. CoJ and City Power have repeatedly argued that Eskom’s billing is overinflated by at least R3.4 billion, a claim which Eskom has reportedly failed to substantiate. Since July 2024, Joburg has lodged monthly appeals regarding these disputed charges, but according to CoJ, Eskom has not provided the clarity needed to resolve these billing issues.

Push for Constructive Negotiations

Joburg’s group chief financial officer, Tebogo Moraka, affirmed the city’s dedication to ensuring uninterrupted electricity access and called for Eskom to engage in “good-faith negotiations.” Moraka criticized Eskom’s “pay now and resolve disputes later” policy, asserting that such an approach disregards the city’s rights and adds pressure to its resources.

The City urged Eskom to consider alternative dispute resolution measures, including intergovernmental relations (IGR) channels, which, according to Joburg, Eskom has overlooked.

Legal Action and Public Assurance

In its statement, Joburg indicated that it would consult legal experts to explore every possible legal avenue to prevent any power disruptions. “The people of Johannesburg deserve reliable and efficient services, and we will not let Eskom’s actions compromise their well-being,” the city said. Joburg reassured its citizens that it remains committed to protecting their rights and welfare, and it has formally requested that Eskom withdraw its notice within five days to allow space for constructive dialogue.

Looking Forward

This latest chapter in the long-standing tensions between Johannesburg and Eskom highlights the challenges of billing disputes and service delivery. Joburg’s firm stance on finding a fair solution and Eskom’s focus on recouping debt underscore the complexities of maintaining utility partnerships under financial strain.