No blackouts, for now, as Johannesburg dodges a power cut crisis

After months of tension, Eskom and City Power have finally reached common ground in their long-running electricity billing war, bringing relief to Johannesburg residents who were facing the looming threat of power cuts.

The two powerhouses agreed to settle their dispute for R3.2 billion, which City Power will pay over four years, effectively ending a bitter back-and-forth over a massive R4.9 billion debt claim that had dominated headlines earlier this year.

What Was the Fight About?

At the heart of the conflict was Eskom’s claim that City Power owed nearly R6.3 billion, R4.9 billion in arrears, plus R1.4 billion in current charges.

But City Power pushed back hard, alleging that Eskom had overbilled by R3.4 billion. The disagreement triggered public anxiety, especially after Eskom threatened to cut electricity supply to Johannesburg.

With pressure mounting, Minister of Electricity Kgosientsho Ramokgopa brought in the South African National Energy Development Institute (Sanedi) to conduct an independent technical review. That report, initially expected within six weeks, was delayed due to the sheer complexity of the billing calculations and technical audits.

The Numbers Behind the Settlement

In a press briefing on Tuesday, Minister Ramokgopa announced the breakthrough.

“City Power will pay R3.2 billion over four years. It’s a significant amount, but it’s also a fair settlement,” he said.

He confirmed that R830 million had been written off, largely due to metering inaccuracies caused by load-shedding, an unexpected but pivotal factor.

“When load-shedding hits, meters can’t be read, so utilities rely on estimates. This introduces massive errors,” he explained.
“One takeaway is that we need smarter bulk metering systems going forward, ones that read zero during load-shedding to avoid confusion.”

A Political and Technical Tightrope

Executive Mayor Dada Morero acknowledged how tough the months-long negotiations had been but praised both teams for reaching a workable resolution.

“Yes, it was challenging. But from November until now, everyone worked hard to reach a deal that’s in the city’s best interest,” said Morero.

The deal spares Johannesburg from potential rolling power cuts, which could have devastated homes, schools, hospitals, and businesses already grappling with scheduled load-shedding.

What This Means for Joburg Residents

While the immediate threat of a shutdown has been defused, the situation is a stark reminder of the fragile state of municipal electricity finances in South Africa.

Johannesburg residents can breathe easier for now, but the bigger picture remains: utilities must modernize infrastructure, improve billing systems, and better coordinate during load-shedding if similar disputes are to be avoided in the future.

The settlement may feel like a win, but it’s also a wake-up call. As Ramokgopa pointed out, South Africa’s energy ecosystem still has serious cracks, and avoiding future power struggles will require better data, smarter metering, and more transparent partnerships between Eskom and municipalities.

Until then, Joburg’s lights will stay on, but vigilance is key.

{Source: IOL}

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