City Power warns government institutions face disconnection over R270m-plus debt

City Power has warned that government institutions in Johannesburg face disconnection if they do not settle outstanding electricity accounts, saying unpaid debts threaten essential public services.

Who owes what

According to IOL, government institutions currently owe City Power more than R270 million in unpaid electricity bills, with public hospitals and clinics accounting for a significant share of that total. Combined with arrears owed by residential customers, businesses and Large Power Users (LPUs), City Power is owed about R13.3 billion in total.

Warning from leadership

According to IOL, City Power Acting Chief Executive Officer Charles Tlouane said those that fail to settle their electricity accounts risk disconnection and that outstanding government debt was placing increasing pressure on the utility’s finances and its ability to maintain reliable electricity infrastructure.

“As government, we have a responsibility to lead by example,” Tlouane told delegates. “We cannot expect residents and businesses to honour their payment obligations if government institutions do not do the same.”

Engagement before enforcement

According to IOL, the utility held a two-day Government Accounts Indaba to encourage engagement rather than confrontation, giving government customers an opportunity to resolve billing disputes and enter into payment arrangements before credit control measures are implemented. City Power emphasised the Indaba was intended to encourage engagement, though Tlouane said the dialogue-based approach could not continue indefinitely if accounts remained unpaid.

City financial strategy and billing changes

According to IOL, City of Johannesburg Group Chief Financial Officer Tebogo Moraka said the engagement formed part of a broader strategy to strengthen relationships with government customers and improve revenue collection. IOL reported that City Power officially assumed responsibility for electricity billing from the City of Johannesburg on 1 July 2025.

According to IOL, City Power said that when it took over billing in July 2025 there were approximately 8,000 customer queries, and that number has since fallen to below 2,000. City Power Chief Commercial Officer Thamsanqa Mathiso said the utility is monitoring queries daily to ensure resolution.

Revenue picture and investments

According to IOL, Johannesburg’s largest commercial and industrial electricity users contribute about 45% of City Power’s monthly revenue, generating roughly R2.3 billion of the utility’s approximately R5.1 billion in monthly collections.

According to IOL, City Power confirmed its approved 2026/27 capital budget will fund upgrades to substations and high-voltage networks, cable replacement programmes, smart meter rollouts and other distribution-system improvements.

According to IOL, City Power (via city officials) said it is investing capital into electric vehicle charging infrastructure as part of a long-term strategy to diversify services.

Call to action

According to IOL, Tlouane linked the utility’s financial health to Johannesburg’s economic future and urged stakeholders to work together to stabilise the grid and honour payment obligations. The utility is offering engagement forums to resolve disputes and arrange payments before pursuing credit-control measures.