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The Minister of Electricity and Energy, Dr Kgosientsho Ramokgopa and Johannesburg Executive Mayor, Mr Dada Morero yesterday announced the successful resolution of the billing dispute between Eskom and the metro’s entity, City Power. The billing dispute had the potential to undermine the security of electricity supply to the City of Johannesburg and its residents.
The Ministry intervened through an Inter-Governmental Relations process, where Eskom, and City Power were urged to negotiate in good faith and find an amicable resolution that was in the best interest of both parties. The Ministry of Electricity and Energy appointed the South African National Energy
Development Institute (SANEDI) as an independent technical assessor. SANEDI verified metering data from the bulk infeed points, applied Eskom’s approved tariffs, and analysed discrepancies and compiled a report that was accepted by all parties, which led to the settlement agreement.
Minister Ramokgopa and Executive Mayor Morero announced that City Power has agreed to settle the R3.2 billion arrear debt owed to Eskom, over the next four years. Eskom had to make a concession to write off R830 million, accumulated over an approximate 10-year period, due to the reversal of notified maximum demand penalty exceedances, wheeling charges, estimation adjustments during loadshedding,
rebilling, and VAT reversals.
“We wanted to give feedback to the rest of the country, on an instrument that we had initiated in November last year to ensure that we bring to bear the power of the InterGovernmental relations and to ensure that service delivery continues uninterrupted.
Of course, the expectation is that City Power continues to maintain the current account. We are excited about this development,” said Minister Ramokgopa.
Full statement below.