Johannesburg faces questions on service delivery and debt following Eskom payment

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The City of Johannesburg averted power supply disruptions after settling a R5.2 billion debt with the national utility Eskom. Eskom confirmed the payment and the commitment to settle a further R1.86 billion due on August 31, 2026, leading to the withdrawal of pending administrative legal actions against the city. Mayor Dada Morero stated that the city would now focus on clearing backlogs in other service delivery areas, including waste management and infrastructure repairs, which have been hampered by outstanding debts to service providers.

Consequences

The city plans to implement a ring-fenced revenue model starting in September, which will allow City Power and Pikitup to retain 70% of their revenue for direct operational management. This shift, combined with the Mayor's focus on restructuring Pikitup's management systems, is intended to address service delivery inefficiencies and personnel disputes.

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