Joburg settles R5.25bn Eskom debt, but questions remain over how it was funded

The immediate crisis may have passed, but Johannesburg's underlying governance challenges have not - OUTA.

The immediate threat of electricity supply interruptions to parts of Johannesburg has been removed after the City settled R5.25 billion in overdue debt to Eskom, but questions remain over how the payment was funded and whether the underlying problem has been fixed.

The Organisation Undoing Tax Abuse (OUTA) welcomed Eskom’s withdrawal of a process under the Promotion of Administrative Justice Act (PAJA) that could have resulted in electricity supply being reduced, interrupted or terminated at certain bulk supply points.

Eskom confirmed on 21 August that it had received the final payment settling the City of Johannesburg and City Power’s accumulated overdue debt of R5.255 billion in full.

“This is a positive development for Johannesburg's residents and businesses. However, we remain concerned about City Power’s ability to address its challenges while the revenue it generates from electricity is not ring-fenced and instead flows into the City’s central treasury,” said OUTA executive manager Julius Kleynhans.