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JOBURG CRISIS ESCALATES WITH THREATS OF POWER CUTS 

 

The City of Johannesburg may have dodged power cuts, but the City’s financial woes and billing disputes threaten its stability. OUTA’s JoburgCAN  is actively involved in efforts to save the city. 

Eskom’s immediate threat to cut power to parts of Johannesburg was narrowly averted following intervention from the Minister of Electricity and Energy over the City of Johannesburg’s (CoJ) unpaid R4.9 billion electricity bill. After months of disputes, the CoJ agreed to pay R1.4 billion of its October 2024 arrears, temporarily keeping the lights on. However, the ongoing billing dispute and financial difficulties highlight deep-seated issues within the metro.

JoburgCAN, an initiative of OUTA, has stepped up to represent frustrated residents and businesses. The organisation, alongside partner associations, issued an urgent letter to Eskom calling for an emergency meeting to address the crisis and clarify the escalating dispute. JoburgCAN and its partner associations met with Eskom and found them to be transparent and engaging. We will continue to keep lines of communication open and inform our affiliates of any developments regarding the notice and report.

We have on numerous occasions highlighted the CoJ's chronic financial mismanagement, a dysfunctional billing system, and deteriorating services, which have left residents paying exorbitant tariffs for unreliable utilities. The initiative has proposed bypassing the CoJ in payments to Eskom to ensure accountability and prevent widespread service disruptions.

The dispute between Eskom and the CoJ has been marked by delayed payments, court battles, audits, and mediation. Minister Kgosientsho Ramokgopa emphasised that the CoJ must honour its payment obligations, regardless of claims of overbilling. An independent assessment by the South African National Energy Development Institute (SANEDI) is underway, with findings expected by November 25. If overbilling is confirmed, Eskom will credit the CoJ's account.

JoburgCAN is closely monitoring this situation and will provide updates to residents. We call on Johannesburg residents to join us in advocating for transparent governance and demand solutions to address the city's spiralling municipal failures.

*Want to get involved in saving Johannesburg? Read about JoburgCANhere, or send an e-mail toinfo@joburgcan.org.za