South Africa

Eskom’s threat to cut power in Gauteng ‘raises questions about fairness’ – These areas may be affected

A standoff between state-owned electricity giants has Johannesburg’s fortunes at stake.

Eskom announced on Thursday their intent to implement power cuts across Johannesburg due to a multi-billion-rand debt owed by the city.

The City of Johannesburg (CoJ) owes the national electricity supplier almost R5 billion, with an additional R1.4 billion becoming due at the end of November.

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Legal battles have failed to remedy the situation, with Eskom giving South Africa’s economic hub until 12 December at the latest to prove why it shouldn’t face disconnection.

Overbilling dispute

Residents often complain to City Power about being overcharged and now it is City Power who is crying foul.

The entity claims they have been overbilled by R3.4 billion and that they have an appeal over the amount pending since July 2024.

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“Eskom’s approach of ‘pay now and resolve disputes later’ in its dealings with the CoJ can no longer go unchallenged,” stated the CoJ.

“There is also an option of intergovernmental relation to resolve intergovernmental disputes which Eskom keeps disregarding,” it explained late on Thursday night.

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

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As a result, City Power and the CoJ said they would continue to use the legal route in order to fight the debt levels and prevent leaving residents in the dark.

Areas where power could be cut

Eskom stated on Thursday that the claims of overbilling have gone unsubstantiated, listing several interactions with City Power since December 2023 aimed at solving the issue.

Eskom accused City Power of not honouring an agreement to make payments while the dispute was ongoing, adding that City Power was “applying set-off against the monthly bills raised by Eskom”, an action contrary to the electricity supply agreement.

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Four areas have been targeted for “termination or disconnection” by Eskom as per the Electricity Regulation Act of 2006.

At least 30 areas served by the Beyers, Fordsburg, Allandale and Crowthorne substations are earmarked for punitive acts.

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Some of the suburbs that fall under these substations, include but may not be limited to:

Fordsburg Substation

Auckland Park

Braamfontein Werf

Brixton

Fordsburg

Johannesburg

Johannesburg CBD

Mayfair

Melville

Melville

Richmond

Sunnyside

Beyers Substation

Berario

Blackheath

Cresta

Fairlands

Malanshof

Northcliff

Randpark Ridge

Risidal

Roosevelt park

Crowthorne Substation

Carlsworld

Crowthorne

Kyalami

Midrand

Parts of Mnandi

Allandale Substation

Allandale

Austin View

Commercia

Ivory Park

Kanana

Mayibuye

Midrand

Parts of Thembisa

Phomolong

Rabie Ridge

Not fair to those who pay

CoJ Ward 132 councillor Annette Deppe deals with residents and businesses that will be impacted by any power cuts at Allandale and Crowthorne substations.

Deppe told The Citizen that Eskom’s decision to target areas like Midrand could be seen as an attempt to put pressure on the city to settle outstanding debts.

“It raises questions about fairness, especially for residents and businesses who may have consistently paid their electricity bills and are not directly responsible for the city’s financial woes.”

ALSO READ: Prepaid electricity meters must still be upgraded by 24 November, says City Power

She stated that if no solution was found, it would have “significant consequences” for residents and businesses.

“Additionally, such measures can harm the local economy and may erode trust between the community and utility providers,” Deppe said.

“A balanced approach that resolves financial disputes without unduly impacting communities is crucial,” she concluded.

No reason for targeting four substations

Shadow MMC for Environment, Infrastructure and Services Nicole van Dyk told The Citizen that it was unclear why these specific substations had been targeted.

Van Dyk, Ward 99 councillor, relayed how her residents have also noted the irony of City Power being in the same ‘pay now, dispute later’ position.

“Councillors are big inundated with panicked messages from residents,” she said.

“Councillors are not spokespersons for entities yet that is what they have become in the absence of officials not doing their jobs,” Van Dyk explained.

NOW READ: Eskom owed R81.6 billion by municipalities: Who owes the most?

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By Jarryd Westerdale