City of Joburg still plans to ditch Eskom, process well underway

The City of Joburg is serious about shedding Eskom and the process to procure more power from independent producers is well underway.

Plans to ditch Eskom as the direct electricity supplier to some areas of Johannesburg have not been shelved, either. Neither has the prospect of more debt forgiveness for Soweto residents, who still owe the stateowned utility about R7.5 billion.

Last year, Eskom added to the taxpayers’ burden when it wrote off R5.3 billion of Soweto’s original R13 billion electricity debt.

Joburg mayor Mpho Phalatse said the city had been in talks with Eskom to explore a new debt rehabilitation, or write-off, programme. Should this be realised, taxpayers will take the full blow of nearly R13 billion in unpaid power bills on the chin.

The city has also continued its talks with Eskom to assume full distribution rights for the whole of Johannesburg, taking over responsibility for supply for thousands of residents who are presently direct customers of Eskom.

ALSO READ: Solidarity vows to drag Eskom to court if new tariff proposal is approved

Mabine Seabe, director mayoral communication, told The Citizen: “The executive mayor has written to various national government departments to explore, among other things, a debt rehabilitation and write-off programme for Eskom clients, which the city does not distribute power to. This will have no impact on Joburg’s revenue.”

Should City Power replace supply to patches of Eskom customers, the utility expects the city to carry the debt. Eskom’s Sikonathi Mantshantsha said: “Should a transaction be concluded, this would include both the assets and liabilities involved in the entity in question.

“This would be a regulated process that involves the affected stakeholders and the public under the guidance of the National Energy Regulator of South Africa.”

In a reprise of the city’s ambition to become more power independent, Joburg’s coalition government, led by Phalatse, plans to accelerate plans to acquire electricity from privateers. She promised at the city’s twoday Energy Indaba in May this would happen in 18 to 36 months.

In her address at the time, Phalatse said: “It is well established that Eskom’s price path is not sustainable for the end-user.

“This has devastating impact on our plans because without cost-effective and reliable power, our city economy is unable to realise its true potential.”

She closed off the Energy Indaba saying calls for expressions of interest from independent power suppliers would be issued within three months.