Cash-strapped power utility Eskom says the R1.4bn allegedly paid to its account by Johannesburg’s City Power has not yet reflected in its account.
“City Power promised to pay their outstanding R1.4bn today, November 29 2024, but it has not yet reflected in our account. Additionally, their October current account of R1.3bn is also due today [November 29],” Eskom spokesperson Daphne Mokwena told Business Day on Friday.
“If they do not pay the outstanding R1.4bn it means that the notice remains in force as stated in the media statement issued on November 11 2024.”
Two weeks ago, electricity minister Kgosientsho Ramokgopa’s intervention led to City Power averting a power crisis after agreeing to pay R1.4bn — portion of the contested R4.9bn it is said to owe — to Eskom due at the end of the month, allaying fear that power outages in SA’s economic heartland would stifle business. Joburg is home to Africa’s largest stock market and regional headquarters of many multinational companies.
City Power spokesperson Isaac Mangena insisted his organisation had met the compromise deadline. “The payment to Eskom has been made. As promised, we will continue to pay the current account until the dispute is resolved. The October bill was due on November 27. That was paid. We are waiting for the finalisation of the [technical] assessment [to resolve the dispute] and we will take it from there.”
Ramokgopa’s intervention came days after Eskom warned City Power that it intended to cut power over unpaid electricity bills, triggering anxiety among residents and businesses.
City Power agreed to pay R1.4bn to Eskom due at the end of the month. The remaining amount, which is in dispute, would be subjected to an independent evaluation to iron out billing discrepancies between Eskom and City Power.
Eskom, praised widely for relief from load-shedding in recent months, has applied to the National Energy Regulator of SA (Nersa) for tariff hikes to net it revenue of more than R1.4-trillion for 2026-28.
The state-owned power utility, owed R78bn by municipalities, is seeking total revenue of R446bn for 2026, R495bn for 2027 and R537bn for 2028.
Proposed average price increases for Eskom’s direct customers are 36.15% (April 1 2025 to March 31 2026), 11.81% (April 1 2026 to March 31 20227) and 9.10% (April 1 2027 to March 31 2028).
The increases are well above inflation, which eased to an annual rate of 2.8% in October from 3.8% in September and 4.4% in August.
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