City Power to get 70% of electricity revenue within 48 hours under new system

By Lebone Rodah Mosima

City Power will receive 70% of Johannesburg’s electricity revenue within 48 hours of it being collected from October.  

The City of Johannesburg (CoJ) will continue collecting electricity payments from customers, but will transfer 70% of that revenue to City Power and retain the remaining 30% under a financial ring-fencing arrangement taking effect on 1 October.

“The arrangement will provide City Power with greater certainty over the revenue available to the business and when those funds will be received,” City Power said.

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“This will strengthen the entity’s ability to plan and manage its financial and operational obligations, including payments to Eskom, contractors and suppliers, procurement of critical materials, maintenance and repairs, and investment in electricity infrastructure.”

It said the ring-fencing was aligned with National Treasury’s Trading Services Reform Programme and reforms intended to improve