Eskom Suspends Power Interruption Notice Against City of Joburg

The suspension allows an independent investigation into an alleged historical overbilling dispute amounting to approximately R3.4 billion.

State-owned utility Eskom has temporarily suspended its Promotion of Administrative Justice Act (PAJA) notice, which threatened potential power interruptions to the City of Joburg (CoJ) and its power distributor, City Power, over disputed debt claims. The suspension allows an independent investigation into an alleged historical overbilling dispute amounting to approximately R3.4 billion. Key Developments in the Dispute

Agreement to Investigate Overbilling: Following discussions on 11 November 2024, involving the Minister of Electricity and Energy and key officials from CoJ, City Power, and Eskom, an independent expert was tasked with verifying the disputed billing. Originally due by 25 November 2024, the report deadline has been extended to 6 December 2024.

Current Financial Obligations:

The City and City Power were required to pay R1.4 billion for their September 2024 invoice to suspend Eskom’s PAJA notice. However, R1.3 billion has been paid, falling short of the agreement.

The October 2024 invoice of R1.3 billion, due by 29 November 2024, remains unpaid. CoJ and City Power have pledged to make further payments by 6 December 2024.

Awaiting Report Findings:Eskom emphasized that it is fully cooperating with the Minister’s process and will await the independent expert’s findings before determining its next course of action.

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Eskom’s Stance and Future Steps

Eskom reiterated its commitment to resolving the matter transparently and efficiently. In a statement, the utility said:"The independent report will provide clarity on the historical overbilling claims, guiding future decisions. Eskom will update stakeholders and the media as new developments arise."

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Background and Broader Implications

The dispute stems from a long-standing billing disagreement between Eskom and CoJ, which has significantly strained relations. The PAJA notice raised concerns about potential power disruptions to Joburg, heightening urgency for a resolution.

This temporary suspension reflects progress in addressing billing discrepancies while avoiding service interruptions, a move praised by civic organizations advocating for uninterrupted power supply.

Next Steps

With the independent report due by 6 December 2024, stakeholders anticipate resolution and clarity on the financial obligations between Eskom and City Power. CoJ Mayor Dada Morero expressed optimism that the investigation would pave the way for improved fiscal accountability and strengthened relations between the entities.

Eskom's actions in this case highlight the utility's ongoing effort to manage municipal debt while ensuring service delivery continuity.