JOHANNESBURG – Executive Mayor Dada Morero has assured residents that electricity supply in Johannesburg will remain uninterrupted, despite the city owing Eskom more than R5.2 billion.
Following urgent engagements with Electricity Minister Kgosientsho Ramokgopa and Eskom representatives, Morero confirmed that a collaborative agreement has been reached to address both the outstanding debt and underlying operational challenges at City Power.
“While the debt remains and must be paid, the focus of our discussions was establishing a partnership between Eskom, the city, and the minister to tackle the root causes affecting electricity distribution,” Morero stated. “Technical teams will finalize payment schedules, but equally important is bringing in experts to address the significant losses we are experiencing.”
The city defaulted on payments in January and February due to a drop in revenue collection rates. However, Morero reported that collections have since improved to approximately 90% in March and April, placing the municipality in a better position to service both the historical debt and current monthly accounts. He acknowledged that earlier communication with Eskom regarding collection challenges could have prevented the escalation.
Under the agreement, the city will continue paying its current electricity account while technical teams from both sides work on sustainable solutions. Key priorities include reducing technical and non-technical losses, which currently stand at 29%, through infrastructure investment and intensified enforcement against illegal connections and meter bypassing—particularly in the inner city and targeted residential estates.
Morero outlined a two-pronged financial strategy: strengthening revenue collection and tightening expenditure management. He noted that some city departments have been spending beyond allocated budgets, and the upcoming budget aims to align expenditure with realistic revenue projections. The city has also engaged National Treasury, with the Minister of Finance reportedly welcoming progress updates and offering capacity support where needed.
On governance, Morero clarified the division of responsibilities: the municipal administration handles day-to-day operations and financial execution, while political leadership provides oversight and strategic direction through the mayoral committee. He expressed confidence in the newly appointed City Manager and the executive leadership team, including the CFO and COO, while emphasizing that they must “go the extra mile” to resolve the city’s challenges.
“Where administrators face obstacles, they must be open with political leadership so we can assist,” Morero said. “They have made commitments to turn around the city’s position, and we expect timely, decisive action.”
Technical working groups are expected to report back on progress regarding loss reduction, indigent support structures, and electricity tariff frameworks. Morero and Minister Ramokgopa will provide public updates as these discussions advance.
The Mayor reiterated that, under the current agreement, Johannesburg residents and businesses should not anticipate load shedding or disconnections related to the municipal debt to Eskom.
