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Legal battle over? – Expert to be roped in to resolve Eskom and City Power’s billing dispute
The disputed bill amounts to R3.4 billion, according to City Power.
City Power workers disconnect illegal connections at Rockridge complex in Yeoville, Johannesburg. Picture: Nigel Sibanda
An independent technical expert has been given two weeks to assess the billing dispute between Eskom and City Power.
On 7 November, Eskom issued a notice warning of potential electricity disruptions in Johannesburg, citing R4.9 billion in outstanding historical debt, in addition to R1.4 billion that will be due at the end of November.
City Power, however, alleged that Eskom has been overbilling, with meter readings not matching the amounts billed to the City of Joburg utility.
City Power and Eskom billing dispute
Electricity and Energy Minister Kgosientsho Ramokgopa explained that the dispute originated from billing inconsistencies identified in 2019, ultimately leading to a case in the Gauteng High Court in Johannesburg.
Ramokgopa stated that it was agreed to appoint a technical expert, who will provide a report on the matter.
“You need an independent technical assessment to reconcile and reconfirm the billing on the part of Eskom and what City Power claims on their version what is the accurate billing.”
ALSO READ: City of Joburg agrees to pay Eskom R1.4bn to avoid power being cut off
The minister revealed that the expert would be sourced from the South African National Energy Development Institute (Sanedi) and would be assisted by two additional experts from Eskom and City Power.
“We have agreed that we will approach the South African National Energy Development Institute and then we will identify someone who is technically competent to be able to lead this assessment.”
He also indicated that the assessment would take 14 days.
“So what will happen is that on the 25th of November the technical expert would come back to myself, the executive mayor and both teams from Eskom and City Power to say to us these are the true facts of the situation.”
Ramokgopa added that he will not pre-empt the findings.
“We will get that report and on the basis of that we make a determination going forward,” the minister said.
“I am confident that once we get to conclude the technical assessment, we will be able to provide a way forward in the most absolute fashion. We are confident that we will find each other.”
City Power’s money ‘spread quite thin’
Meanwhile, City Power CEO Tshifularo Mashava stated that both the city and Eskom would “definitely be bound” by the outcome of the assessment.
She also mentioned that the disputed bill amounts to R3.4 billion.
“There was an October bill of R1.4 billion and there’s another bill now which is not due yet of R1.3 billion so those are the actually numbers in terms of the debt,” she said.
Regarding whether City Power has the funds to pay Eskom after agreeing to settle the current account, Mashava stated: “We are not saying we are cash flush at this point [but] we are indicating that the money that we have is being spread quite thin.”
READ MORE: Eskom ‘not to blame’ for Joburg’s electricity debt crisis – Outa
As a result, City Power will intensify its revenue collection efforts “because we would like our customers to also come to the party and to pay for what we give them”.
In addition, Joburg mayor Dada Morero confirmed that the legal battle between Eskom and City Power will be put to bed.
“Around the 25th, we will give a clear report on how we have resolved that debt issue between ourselves, which then means we will then exit officially the court processes at that time.”
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