Vehicles travel along a darkened street during a power outage in central Johannesburg. (Photo: Supplied) 
Eskom plans to cut power to Johannesburg “at certain predetermined times of day”. This is after the utility, City Power and the City of Johannesburg (CoJ) could not agree on the municipality’s R4.9-billion debt.
An Eskom statement said it had served a notice of intention to interrupt the electricity supply to the city. It explained that despite “all the avenues that Eskom explored and efforts to accommodate the CoJ, the matter has reached a point where Eskom can simply no longer afford to accommodate the CoJ without putting further financial strain on and harming its own business”.
According to Eskom, the city’s failure to pay its bulk electricity bills has severely affected its ability to provide electricity at sustainable costs, as the utility must take out loans to cover operational expenses that should be met by revenue from these payments.
“When entities like the CoJ fail to pay Eskom timeously or at all, it forces Eskom to borrow additional money at premiums to fund operational costs,” said Eskom’s statement on Thursday night.
“Borrowing money to fund operational cash shortfalls caused by the failure of municipalities such as the CoJ to pay Eskom for bulk electricity increases the costs of providing electricity exponentially.”
“The CoJ and/or City Power currently owe Eskom an amount of R4.9-billion, excluding the current account of a further R1.4-billion which will become due and payable at the end of November 2024.”
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Eskom said it had served the notice “in accordance with the Provision of Promotion of Administrative Justice Act (Paja)”.
Section 3 of the Paja mandates that administrative actions affecting individuals must be lawful, reasonable and procedurally fair, which includes providing affected parties with notice and an opportunity to make representations before any decision is finalised. Moreover, the interruption of services must not only be justified, but also executed in a manner that respects the rights of those affected.
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In its statement, Eskom announced that it would issue a public notice inviting “all interested and affected parties to submit written representations” and that “comments, and/or submissions indicating why Eskom should or should not proceed to interrupt electricity supply to the points mentioned in the Paja notice”.
“A final decision on whether Eskom will proceed with the interruption will be communicated after a review of the representations received through the Paja process on 12 December 2024.”
In a joint statement released late on Thursday night, the City of Johannesburg and City Power said Eskom's threat was "unjust, counterproductive, and potentially harmful to the residents and businesses of Johannesburg".
"The CoJ has consistently demonstrated its commitment to meeting its financial obligations and has engaged with Eskom to address billing issues. However, Eskom has failed to provide clarity on disputed billing charges, forcing the city to seek legal recourse to protect the rights and interests of its citizens," the statement read.
"Eskom's approach of 'pay now and resolve disputes later' in its dealings with the City of Johannesburg can no longer go unchallenged," the joint statement read adding that the City was in consultation with its legal counsel and would explore all available legal avenues to prevent any disruptions to the electricity supply.
Eskom, for its part, said it had reached a point where it could simply no longer afford to accommodate the CoJ without putting further financial strain on and harming its own business.
"The CoJ has breached these obligations by not paying Eskom for the bulk electricity it supplies, making it almost impossible for Eskom to fulfil its mandate," the parastatal's statement read.DM