Eskom ‘not to blame’ for Joburg’s electricity debt crisis – Outa

As Joburg residents brace for looming load shedding, the Organisation Undoing Tax Abuse (Outa) stressed that Eskom cannot be blamed for the financial crisis of the City of Johannesburg and City Power.

Last week, Eskom served a notice of intention to interrupt the power supply to the City of Johannesburg (CoJ) and City Power at certain predetermined times of the day in a billing dispute involving billions of rand.

Billions owed

Eskom said CoJ and/or City Power currently owe Eskom R4.9 billion, excluding a current account of an additional R1.4 billion, which will become due and payable at the end of November 2024.

City Power and the City of Johannesburg sharply rebuked Eskom’s notice, saying they are consulting with their legal team to explore legal options to prevent any disruptions to electricity supply.

ALSO READ: Pay up or we will cut your lights: Eskom warns Joburg over R6.3bn bill

However, Advocate Stefanie Fick, Executive Director of the Accountability at Outa, told 702 that Eskom is not to blame.

‘Don’t blame Eskom’

“If it wasn’t so sad, its actually laughable, it really is a joke. Although Eskom can look at look at a few things in order to make its operations a bit more lean. We just heard that they are asking for a 66% increase in the electricity tariffs for the next three years and there’s a lot that they can do.

“But on the other hand, I don’t blame Eskom. I cannot believe that a big metro, an economic hub is R4.9 billion behind on electricity payments and that after I think the majority of people living in Joburg is probably paying their electricity accounts and for them to sit without electricity it’s mind boggling,” Fick remarked.

Court battle

City Power’s battle with Eskom has already played out in the courts.

In August, the regional power utility was granted leave to appeal a Johannesburg High Court ruling in favour of Eskom, related to a billing dispute.

This was after the High Court ordered the City of Johannesburg and City Power to pay Eskom over R1 billion, plus interest accrued, for the cost of bulk electricity supply services for March.

The Citizen reported that R1.073 billion, including interest, was due for the unpaid electricity account after Eskom approached the court in May to compel the regional power utility to settle its debt.

When the matter was heard on 4 June, the amount owed to the power utility was R3.4 billion.

Why is Joburg not paying Eskom?

Fick said Eskom and embattled municipalities owing billions to the power utility need to sit around a table and come an instalment payment arrangement.

“One has also needs to go an look at the administration. Why is the money not being paid over? Questioning the administration, you look at what is the state of Joburg? It’s roads that falling apart, potholes, traffic lights and just a general maintenance of infrastructure is falling behind.

“Our bridges, four out of five is really not that safe, it needs maintenance otherwise its  going to be critical and if you look at all of that, where’s the problem. It should be at the administration at the City of Joburg and I think this is where residents should be really worried and say ‘but we really need to do something about this,’” Fick said.

Ramaphosa says pay for services

Last year, in his weekly newsletter, President Cyril Ramaphosa said while South Africans’ lives can only improve if local government challenges were addressed, citizens should also pay for services they receive.

“It is imperative that municipalities must have credible, sustainable and well-managed revenue collection programmes that apply fair and equitable standards to all customers. Citizens should play their part by paying for services. All businesses and government departments must pay outstanding debt to municipalities,” Ramaphosa said.

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