Eskom warns of looming power crisis in Johannesburg due to unpaid debt

Eskom warns of looming power crisis in Johannesburg due to unpaid debt. REUTERS/Siphiwe Sibeko

Eskom warns of looming power crisis in Johannesburg due to unpaid debt. REUTERS/Siphiwe Sibeko

Published 3h ago

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Power utility Eskom has warned the City of Johannesburg that a severe power crisis is looming as it serves a notice of intention to interrupt power supply to the city and City Power due to a R4.9 billion unpaid debt.

This has excluded an additional R1.4 billion due by the end of November.

According to Eskom, the drastic measure follows the power utility’s exhausted efforts to accommodate the city, which has breached its constitutional obligations to cooperate and assist Eskom in providing affordable electricity to citizens.

“The city’s refusal to pay its monthly bills in full, citing unsubstantiated claims of over billing, has forced Eskom to consider borrowing money at premiums to fund operational costs. This not only increases the cost of providing electricity exponentially but also contributes to the growing municipal debt, which stands at R90 billion as of September 2024,” Eskom wrote in a statement.

It added: “Eskom’s financial sustainability hinges on improving its balance sheet through increased revenue and reduced expenses. However, the city’s actions have made it challenging for Eskom to fulfil its mandate.”

Starting November 8, Eskom will invite written representations from affected parties on whether to proceed with the power interruption. A final decision will be made on December 12 after reviewing submissions.

Meanwhile, a heavy storm that swept through Johannesburg last night left most of the city in darkness and scores of informal settlements in disarray.

Dark clouds spread into most parts of Johannesburg in the late afternoon but were immediately followed by heavy rain that resulted in a fault trip in a circuit.

The Star understands that one of the biggest malls in Johannesburg, Maponya Mall, was flooded with water.

The Star

mashudu.sadike@inl.co.za