Neelam Rahim | neelam@radioislam.co.za

3-minute read
08 November 2024 | 18:50 CAT

Eskom warns of December power cuts after City of Johannesburg R4.9bn debt stalemate.(Vehicles travel along a darkened street during a power outage in central Johannesburg – Daily Maverick)

In a recent public notice, Eskom has threatened to cut off electricity to Johannesburg due to the city’s staggering R4.9 billion debt. This sum excludes an additional R1.4 billion, which will be payable by the end of November, adding to Johannesburg’s existing R90 billion debt, one of the highest in South Africa.

The City of Johannesburg and City Power have described Eskom’s move as “unjust, counterproductive, and potentially harmful” to residents and businesses. In an interview with Radio Islam International Councillor Zark Lebatlang expressed shock at Eskom’s announcement, emphasizing the severe repercussions of electricity disruptions on the city’s economy. “We immediately engaged with officials from the Department of Finance and the city manager to understand the situation,” he said, pointing to possible disastrous consequences for residents and businesses.

Lebatlang revealed that there is ongoing litigation between the city and Eskom, involving disputes over billing and alleged overcharging by Eskom. “Our position is that Eskom and City Power need to find common ground to resolve the billing and debt issues,” he explained, cautioning that public notices of power cuts could worsen the situation.

Adding to the city’s financial woes, Eskom cited the Promotion of Administrative Justice Act (PAJA) as grounds for its intervention, aiming to ensure accountability from Johannesburg for its mounting debt. However, Lebatlang criticized the approach, calling it a “reckless move” that overlooks ongoing negotiations. “Both parties need to sit down, address the overbilling concerns, and clarify the actual debt owed,” he asserted, urging for an urgent meeting to prevent the power cuts.

The Minister of Electricity has since engaged with the executive mayor, hoping to mediate a solution that avoids drastic disruptions. “For over 200 days, Johannesburg has been free from load shedding, which has brought much-needed relief to businesses and residents. Now, these talks are critical to maintain stability,” Lebatlang added, highlighting the importance of transparency and cooperation.

As the city navigates this financial impasse, residents and businesses anxiously await a resolution that will safeguard Johannesburg’s energy supply and protect its economic interests.

Listen to the full interview on The Daily Round Up with Moulana Junaid Khsarsany and Councillor Zark Lebatlang here.