D-Day for City Power ring-fencing as turnaround demands more action

Jonathan Erasmus

City Power’s move to ring-fence 70% of its electricity revenue from 1 October is an important step towards stabilising the utility, but its internal crisis, critical staff shortages and operational inefficiencies must also be urgently addressed, according to city analysts.

Under the new arrangement, which comes into effect today (Thursday), the City of Johannesburg, who along with City Power announced the initiative earlier in September, will continue collecting electricity payments, but 70% of revenue collected on City Power’s behalf will be transferred to the utility within 48 hours.

The City will retain the remaining 30%.

Until now, the City and its entities have operated under a single “sweeping account”, under which revenues generated by City Power and other entities have been absorbed into broader operational expenditure.

Critics have argued that this practice is among the reasons City Power has struggled to maintain existing infrastructure and roll out new