Eskom’s renewed threat to plunge Joburg into darkness over R5.2bn debt will have dire consequences on residents and businesses.
The power utility has given the city until July 8 to clear its arrears and debt or face disconnections.
This means Eskom-supplied areas such as Fourways, Sandton, Soweto, Orange Farm and Ivory Park, among other areas, could be in darkness if the city can’t raise the funds.
Eskom has already cut off more than 50 streetlights in these areas due to a separate R4m debt. These lights include the corner of William Nicol and Rose Road, as well as Maggie Baloyi Street in Ivory Park and parts of the M1 highway. This will also affect traffic lights.
The utility said it will allow affected residents to make a representation or submission on why the bulk electricity supply must not be disconnected.
Eskom has threatened to pull the plug on Joburg before over unpaid debt. The debt comes despite a settlement agreement reached by the city and Eskom via the courts last year.
There has been a serious lack of transparency at City Power, and that [Eskom’s threat] is only adding fuel to the fire.
— Belinda Kayser-Echeozonjoku, DA Joburg caucus leader
DA Joburg caucus leader Belinda Kayser-Echeozonjoku said the issues of power and the endless problems at City Power were concerning.
“There has been a serious lack of transparency at City Power, and that [Eskom’s threat] is only adding fuel to the fire,” said Kayser-Echeozonjoku.
She said this threatens service delivery. “For example, we have seen wards going six to eight days without electricity, and residents constantly have to escalate complaints to senior management.”
In the letter dated May 15, Eskom said the city continued to owe despite a court-ordered settlement agreement regulating the repayment of the debt and current electricity usage.
“Despite the existence of the aforementioned court order and the indulgence granted by Eskom through the repayment arrangement, COJ/CP [City of Johannesburg/City Power] has failed to honour the terms of the court order by failing to make payment of both the historical debt instalments and the current electricity account on the due dates,” the letter reads.
In June, sister publication Business Day reported that City Power and Eskom had reached a settlement of R3.2bn over the bill. At the time, Eskom had threatened to cut supply to the city over the R4.9bn it said it was owed.
At the time, electricity minister Kgosientsho Ramokgopa intervened, and the city agreed to pay R1.4bn.
But Eskom‘s letter said as a result of the city’s failure to comply with the conditions of the court order, the debt was increasing, placing enormous strain on the utility’s cash flow.
Should the electricity supply be disconnected, Eskom said the city will be required to pay the full outstanding amount, including interest; pay a reconnection fee and, if applicable, a new connection charge; and provide updated security for the account before the electricity supply is reconnected.
Kayser-Echeozonjoku said Eskom’s threat showed that the residents of Joburg were bearing the brunt of instability, infighting, politicisation of service delivery, and a lack of governance within the city’s entities.
City Power spokesperson Isaac Mangena said the utility was aware of the outstanding debts, which were raised with Eskom in the intergovernmental relations forum meetings.
“I know that we have been paying through the city’s finance department, and the arrears should be reduced from where they were. The city is best positioned to respond to the said letter and alleged threats by Eskom,” Mangena said.
Sowetan sent questions to mayor Dada Morero and the city’s spokesperson, Nthatisi Modingoane, but neither had replied by the time of publishing.
Joburg IFP mayoral candidate Mlungisi Mabaso said residents and businesses would be severely affected should the power utility disconnect.
“As the economic hub of the country, we need to protect the investments made by the private sector in Johannesburg and also demonstrate the city’s capacity to lead and govern effectively. Issues such as the Eskom debt should not stand in the way of the leadership of the city,” he said.
PAC regional chairperson Khehla Radebe said: “We condemn what Eskom is saying because our people have already been experiencing serious problems with electricity supply. Even as we speak, in areas around Dobsonville Ext 3, there has been no electricity [since Sunday].”
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