Latest news with #R830
eNCA
24-06-2025
- 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
24-06-2025
- 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.
The South African
24-06-2025
- Business
- The South African
Eskom and City Power strike a debt deal
City Power and Eskom have reached an agreement over their long-standing electricity billing and debt dispute. The two parties have been in dispute regarding the amount owed to Eskom as debt and how the power utility bills City Power for bulk electricity supply. During a media briefing on Tuesday, the Minister of Electricity and Energy, Dr Kgosientsho Ramokgopa, announced that: • City Power will pay an amount of R3.2 billion to Eskom over the next four years • Eskom will write off some R830 million in penalties and related costs 'We have accepted that there are major challenges with regards to tariffs during winter. There is a time of use and during winter, the tariff is particularly heavy, and households, industries and customers find it very difficult to meet their obligations. So, we have accepted that during winter periods, there will be relief in relation to the payment of the R3.2 billion. 'We have been able to write off that R830 million as a result of firstly, they don't have to pay interest on that which is owed. 'Eskom has also conceded with regard to the load shedding estimations and also the penalties that have to do with notifiable maximum demand. 'So, all of those have been removed… totalling to R830 million and that's the concession that Eskom has made,' Ramokgopa explained. The Minister said the resolution of the dispute between the two entities can be used as a template for other struggling municipalities. 'We are excited about this development. We also have something similar in Tshwane and as and when municipalities come forward, we will have these discussions on how best to provide a degree of relief. 'Of course there must be a case that is presented, accepting that Eskom has also got its obligations… they need to collect because they generate electricity. 'That costs money and they must recover that money from the end user to reinvest it back into their asset base and into the generation of electricity,' Ramogkopa added. 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.
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 Citizen
31-05-2025
- Entertainment
- The Citizen
Veteran journalist and editor Andrew Trench has died
A crowdfunding campaign was started earlier his year to raise funds for Trench's cancer treatment. The SA media industry is mourning the death of veteran journalist and editor Andrew Trench. Trench, who worked for several major publications both in South Africa and abroad, died on Friday evening surrounded by family. He had been battling oesophageal cancer. 'Dear friends. Andrew left us last night at around 7pm, with Gemma and I beside him,' his wife, Gill Moodie, told friends in a social media post. 'He became very peaceful in the last few hours, and I know he felt held and loved. Thank you, all, for your love and support this year as he battled cancer.' A memorial for Trench is likely to be held on 14 June in Cape Town. Once confirmed, further details will be reported. 'If you can join us in Cape Town to celebrate Andrew – and there's much to celebrate – we'd love to have you. Crowdfunding campaign A crowdfunding campaign was started earlier his year to raise funds for Trench's cancer treatment. It raised over R830 000 and drew support from around the world. Many who donated shared memories of his love, kindness, mentorship, and dedication to his craft. This is a developing story
