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eNCA
7 days ago
- Business
- eNCA
Eskom waives interest and penalties for City of Johannesburg
JOHANNESBURG - The lights won't go off in the City of Gold. The agreement comes after Eskom warned in November that it would cut off power to Johannesburg residents over a disputed R4.9 billion debt. City Power and Eskom have reached a settlement over the City of Johannesburg's exorbitant electricity debt. WATCH | City Power, Eskom reach R3.2bn settlement to stop Joburg blackouts threat The City will settle R3.2 billion rand over the next four years. Eskom has also agreed to waive interest, penalties and other charges amounting to R830 million rand. Energy analyst, Chris Yelland, from EE Business Intelligence spoke to eNCA.
IOL News
7 days ago
- Business
- IOL News
Eskom, City Power reach R3. 2 billion deal to avoid Joburg power cuts
The agreement comes months after Eskom threatened to disconnect Johannesburg residents over a disputed R4.9 billion debt, sparking public outrage and fears of widespread blackouts Eskom and City Power have reached a R3.2 billion settlement agreement aimed at resolving long-standing billing disputes and safeguarding Johannesburg's electricity supply, Electricity Minister Kgosientsho Ramokgopa announced on Tuesday. The agreement comes months after Eskom threatened to disconnect Johannesburg residents over a disputed R4.9 billion debt, sparking public outrage and fears of widespread blackouts. The new deal appears to have averted that crisis, at least for now. Under the terms of the settlement, City Power will pay Eskom R3.2 billion over four years, but only outside of the high-demand winter period to avoid putting additional pressure on the grid and consumers. Ramokgopa also revealed that R830 million in interest charges have been written off as part of the agreement. 'This deal allows us to stabilise electricity supply to Johannesburg while acknowledging historical financial inefficiencies,' said Ramokgopa. 'It's a significant step forward in cleaning up our electricity system.' The billing dispute between Eskom and City Power dates back several years, with mismatches between bulk electricity purchases and the amounts billed. Johannesburg residents have long complained of incorrect electricity billing and erratic service delivery. Experts have also pointed to the city's poor revenue collection practices as a major factor contributing to the growing municipal debt. Joburg Mayor Dada Morero welcomed the agreement, calling it a 'fair settlement' that would protect consumers from disruptions. 'Residents will not be affected during the settlement period,' Morero said. 'This has always been a dispute between two entities — not the people of Johannesburg. We are ensuring continuity of service while resolving a complex financial disagreement.' City Power, a municipal-owned utility, distributes electricity in parts of Johannesburg but remains reliant on Eskom for supply. The power utility has faced increasing pressure in recent years over infrastructure failures, load shedding, and mounting unpaid bills. The agreement is being seen as a lifeline for both entities: for Eskom, it brings in much-needed revenue; for City Power, it avoids the political and logistical nightmare of Eskom cutting power to one of South Africa's biggest cities. While the deal offers short-term relief, analysts warn that it does not solve the underlying issues of mismanagement, billing errors, and financial instability that have plagued municipal electricity supply in the country.
IOL News
24-06-2025
- Business
- IOL News
City Power, Eskom reach R3. 2 billion settlement in long-running billing dispute
Johannesburg residents have been given some relief after power utilities reached an agreement to resolve their long-running electricity debt dispute. Image: Pexels Johannesburg residents have been given some relief after power utilities Eskom and City Power reached an agreement to resolve their long-running electricity debt dispute. Earlier this year, Eskom threatened to cut power to the City of Johannesburg and City Power over an unpaid bill of R4.9 billion, plus R1.4 billion in current charges. City Power however had consistently disagreed with the amount. It claimed Eskom had over-billed by more than R3.4 billion, which led to the Minister of Electricity Kgosientsho Ramokgopa appointing the South African National Energy Development Institute (Sanedi) to compile a technical report on the matter. The report was expected within six weeks but, according to the Minister, was delayed due to the magnitude of the work involved. In a press briefing on Tuesday, Ramokgopa provided an update on the dispute and announced that the two utilities had settled for R3.2 billion, to be paid over four years. "Johannesburg City Power will pay R3.2 billion over a period of four years. It's important to appreciate that this is a significant amount, and City Power and the City of Johannesburg have done everything possible to maintain payments on the current account," Ramokgopa said. "Despite all these difficulties of course there will be challenges from one month to the other but the issue in dispute remained in dispute until we resolved this matter" He added that R830 million of the original debt had been written off, mainly due to meter reading failures caused by load-shedding. "First we were able to confirm that there are issues that have to do with the impact of load-shedding remember this period also spanned that period where we had intense load-shedding. "Where there is an absence of metering you are doing estimates and you can imagine you will not be accurate I think one of the lessons going into the future is we need to ensure that there's bulk metering so that when there's load-shedding it reads zero," Ramokgopa added. Executive Mayor Dada Morero acknowledged the challenges faced during the negotiation process but praised the efforts of all parties involved in reaching a workable settlement. "The process that we undertook from November, yes it had its challenges but we want to acknowledge the work that the team put in place to ensure that at the end we can arrive at a settlement that we can all be comfortable with," Morero said. [email protected] IOL Business Get your news on the go, click here to join the IOL News WhatsApp channel
The South African
10-06-2025
- Business
- The South African
The small SA town where property prices grow by R1m each year
Demand for property in South Africa's Western Cape has increased tenfold, with property prices in some areas surging by the million each year. As reported by BusinessTech , these areas, especially the smaller seaside towns, are attracting both local and foreign property buyers. One such popular area is the fishing village of Kalk Bay, which has seen property prices go up by R1 million every year since 2020. Kalk Bay, a small, quirky fishing village on the False Bay coast of Cape Town, is known for its bohemian vibe, colourful harbour, and mix of old-school charm and modern edge. BusinessTech reported that from 2020 to 2025, house prices in areas along False Bay increased from 20% to as much as 150%. According to Lightstone Property and Seeff Property data, Kalk Bay full-title house prices increased from R4.9 million in 2020 to R9 million at the start of 2025 – a staggering 83% increase. On average, sectional title property (apartments, town houses) prices also increased by 150% over the same period, from R2 million to R5 million. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1 Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
