CITY POWER AND ESKOM REACH R3.2 BILLION SETTLEMENT AFTER MEDIATION
City Power, Eskom, and government officials have reached a settlement in a long-standing payment dispute, with the Johannesburg electricity utility agreeing to pay R3.2 billion to Eskom over four years.
The agreement follows months of mediation by the South African National Energy Development Institute (SANEDI), as directed by the court. The dispute, which dates back nearly a decade, involved billing discrepancies, metering inaccuracies, and penalties related to load shedding.
Key Details of the Settlement
-
Payment Plan: City Power will pay R3.2 billion over four years.
-
Debt Relief: Eskom has agreed to write off R830 million, covering disputed interest, penalties, and adjustments for load shedding estimation errors.
-
Winter Relief: Payments will be paused during winter months to ease financial pressure on City Power and consumers.
Officials Hail Agreement as a Milestone
Electricity and Energy Minister Dr. Kgosientsho Ramokgopa praised the resolution, emphasizing the importance of intergovernmental cooperation.
“This settlement preserves the financial sustainability of both City Power and Eskom,” he said. “We have created a template for resolving similar disputes across the country.”
Johannesburg Executive Mayor Dada Morero thanked all parties for their efforts, acknowledging the tense negotiations. “At some point, it was almost black-on-black violence, but we reached an agreement,” he said lightheartedly.
How the Dispute Was Resolved
SANEDI was appointed as a neutral mediator to assess billing and metering discrepancies. The process, initially expected to take three weeks, extended over seven months due to the complexity of reconciling years of disputed data.
SANEDI’s technical team analyzed bulk meter readings, adjusted for load shedding inaccuracies, and removed unjustified penalties. The final report will be made public for transparency.
What This Means for Johannesburg
The agreement ensures uninterrupted electricity supply while easing City Power’s financial burden. It also sets a precedent for resolving similar disputes between Eskom and other municipalities.
With the deal finalized, both entities can focus on improving service delivery and addressing South Africa’s broader energy challenges.
