City Power, Eskom reach R3.2bn debt deal with winter relief measures

By Lungile Ntimba 

Electricity and Energy Minister Kgosientsho Ramokgopa, alongside Joburg mayor Dada Morero, announced that City Power has agreed to a structured settlement plan for its R3.2 billion debt owed to Eskom over the next four years.

The billing dispute had the potential to undermine the security of electricity supply to the City of Johannesburg and its residents.

Ramokgopa and Morero made the announcement during a media briefing on Tuesday.

Eskom agreed to write off R830 million, accumulated over approximately ten years, which includes penalties for exceeding notified maximum demand, wheeling charges, estimation adjustments during loadshedding, rebilling, and VAT reversals.

The agreement comes after an investigation by the South African National Energy Development Institute (SANEDI), an independent technical assessor.

SANEDI verified metering data at bulk infeed points, applied Eskom’s approved tariffs, analyzed discrepancies, and compiled a report that facilitated the settlement accepted by all parties.

SANEDI’s report findings confirmed