Neelam Rahim | neelam@radioislam.co.za

3-minute read
12 November 2024 | 18:10 CAT

A bustling street in Johannesburg’s CBD amid electricity disputes.

In a development impacting millions in Johannesburg, Eskom has temporarily retracted its threat to cut power to the city after intervention from the Minister of Electricity. This decision follows a tense dispute over unpaid bills totalling R4.9 billion. Both Eskom and Johannesburg’s City Power have now agreed to an independent evaluation by the South African National Energy Development Institute (SANEDI), which is set to clarify the accuracy of the city’s billing issues.

Johannesburg Mayor’s office has confirmed the city’s commitment to pay R1.4 billion while disputing the remaining R3.5 billion. “While this may align with the user-pays principle, the city’s financial strains remain a concern, as municipal debt now exceeds R90 billion,” stated a spokesperson.

The city’s financial burden has raised broader questions about its ability to cover essential services. Julia Fish, a local analyst, noted in an interview with Radio Islam International, “With a collection rate now 10% below the required 94%, the city’s budget is not fully funded. This shortage jeopardizes its capability to maintain reliable service delivery.” She further explained the need for Johannesburg to reassess its budget priorities, ideally dedicating more to essential infrastructure instead of non-core expenditures.

If the billing dispute persists, Eskom may reissue its termination notice in January 2025, potentially affecting areas like the CBD, Ferndale, and Cresta. Fish emphasizes the importance of public awareness and action, saying, “Residents should closely monitor the PUDRA process, allowing affected citizens to file objections.” The notice serves as a warning but also opens avenues for public objections until December.

For those impacted, the situation underscores the need for transparency and responsiveness in the city’s municipal debt management. As residents brace for potential cuts, the dispute raises broader concerns about Johannesburg’s fiscal health and the sustainability of its utility services.

Listen ti the full interview on The Daily Round Up with Moulana Junaid Kharsany and Julia Fish here.