City Power debt: Which SDC’s owe Eskom the most?

Johannesburg’s municipal stresses have been given room to breathe but City Power’s ledger is still swollen.

Eskom’s recent threat to cut Johannesburg’s power sent the city’s residents into a mild panic, voicing their frustrations at being punished despite paying their bills.

To bridge the gap temporarily, Minister of Electricity and Energy Dr Kgosientsho Ramokgopa stepped in on 11 November to broker a R1.4 billion payment from the city of gold to the national power utility.

City Power regional footprint

The City of Johannesburg’s municipal footprint is split into eight regions — A to G — with City Power operating eight service delivery centres, formerly known as depots.

While the SDCs lightly mirror their respective regions, there is some overlapping, most notably with areas near the CBD.

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In their public notice issued on 8 November, Eskom earmarked four substations that were targeted for “termination or disconnection”.

Two of those substations fall under the Midrand SDC, one in Randburg and the other on the fringes of the Johannesburg CBD.

Eskom did not specify why these areas were singled out, however, City Power revealed to The Citizen that Midrand and Randburg have among the lowest debt levels registered with the city.

Region-by-region debt levels

City Power furnished The Citizen with the most recent debt levels of consumers within the SDC footprints.

Including a limited sample of the suburbs they cover, here are the amounts each SDC is indebted to City Power:

• Inner City SDC (Braamfontein, Doornfontein, Hillbrow, Jeppestown, Joubert Park, Marshalltown, Newtown, Berea, Yeoville) : R2.72 billion
• Reuven SDC (Booysens, Mondeor, Robertsham, Kibler Park, Naturena, Eikenhof, Ormonde, Glenvista, Turfontein) : R2.2 billion
• Hursthill SDC (Industria, Westbury, Bosmont, Parkhurst, Roosevelt Park, Forrest Town, Melville) : R1.52 billion
• Lenasia SDC (Vlakfontein, Lenasia South, Hopefield, Ennerdale, Nancefield, Grasmere) : R851.4 million
• Roodepoort SDC (Florida, Fleurhof, Matholesville, Kloofendal, Constantia Kloof, Weltevreden Park, Ruimsig) : R784.3 million
• Randburg SDC (Ferndale, Bromfof, Randpark, Bryanston, Kya Sand, Northriding, Olivedale, Sundowner) : R664.8 million
• Alexandra SDC (Cydna, Melrose Arch, Illovo, Rosebank, Houghton, Far East Bank, Wynberg Kew, Lombardy West) : R482.8 million
• Midrand SDC (Noordwyk, Allandale, Vorna Valley, Randjiespark, Mayibuye, Waterfall City) : R352.4 million

Combined, the amounts total the R9.6 billion owed to Eskom by the CoJ.

Soweto debt

Despite Soweto — Region D — falling under the City of Johannesburg’s municipal footprint, the area is serviced directly by Eskom.

It was reported in 2023 that a scrapping of Soweto’s debt was being considered, with that figure estimated at R4 billion.

Eskom were contacted on 11 November with a request for the area’s debt levels but no response had been received at the time of publication.

Culture of non-payment

City Power stated that a culture of non-payment was rife in the city, highlighted by a recent incident during a revenue collection drive in the deeply indebted Inner City SDC area.

Officials were attempting to disconnect non-paying customers on 7 November when they encountered a tactic commonly used by business owners to delay disconnection.

The owners of a property in Parktown presented law enforcement officials with a court order that had expired in 2021.

“Despite the fact that the property owed over R5.2 million and had not made a payment since December 2018, the property managers engaged in prolonged negotiations, including multiple calls with their lawyers,” stated City Power spokesperson Isaac Mangena.

After heated exchanges, the parties agreed to a R1.5 million payment that was made that afternoon, allowing for the disconnection to be reversed.

“Even those with the means to pay, are relying on the courts to delay payment.

“This undermines not only City Power’s financial health but also places a strain on the utility’s ability to provide services,” said Nqobani Mzizi, Senior Manager of Revenue Enhancement at City Power.

Revenue collection drives are City Power’s primary weapon against large defaulters, with operations conducted weekly.

“In the past quarter alone, the utility has successfully collected over R2 billion in revenue,”

“The disconnection drives remain our last resort as we would rather foster a mutually beneficial relationship of quality service provision to the residents made possible by the payment of services,” Mangena concluded.

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