Joburg's Eskom Debt, OneLine, Strategy to stabilise electricity infrastructure

Added: 2026-05-31

[00:00:00]Electricity Minister Hosen Toa has intervened on the city of Johannesburg's dead wos bring the two parties together to avert imminent rolling blackouts. It follows a warning from ESCOM that it would reduce, interrupt or terminate the city's supply if money is not paid. The electricity minister says following a fruitful two days, the city has agreed to enter into a distribution agency agreement. We have already created a dispensation that cabinet has approved in the form of the distribution agency agreement and what we have agreed to meets the all the parameters of being designated as a distribution agency agreement which is what the technical teams will will discuss. I think the the value of this meeting one we've been able to find each other we have agreed on the broad principles and the team will work on the basis of that broad principles so that we a catastrophe come the 8th of July and I'm confident we'll not get to to that stage >> the agreement is a strategy in stabilizing electricity infrastructure improving financial management rebuilding public trust and supporting local economic development according to to the electricity minister. At least nine municipalities across the country have entered into the partnering agreement that is yielding positive results.

[00:01:28]>> We working on this this intervention.

[00:01:30]It's just that in our comprehension of the DAA, we never thought that one of the first candidates will be a metro.

[00:01:37]Again, I mean the upside is that once you get Johannesburg right, it means we can get any municipality right because of its size and complexity and I'm happy that the the the executive mayor leading his team who have agreed I mean we have been able to find each other and we are moving forward I think in unison.

[00:01:57]>> Johannesburg Mayor Dad Morero has welcomed the interventions with an assurance that the city will keep up to its debt obligations to Escom. Our technical teams will now be starting with the work. Look at what our losses, where are we bleeding, what needs to be done, extra capacity, where are we bleeding in terms of revenue collection, what capacity and support we need in the partnership. So all those issues have been discussed and will be taken care of. The possibility of blackouts this winter left businesses and residents worried. Mayor Morero has assured them that the lights will remain on this winter.

[00:02:37]>> Our month of January and February were bad months for the city in terms of our collection which dropped to around 81% from 86%. So we dropped but we saw an increase in March and the month of April which is sitting at 90%. All we need to do is to sustain uh the collection rate by the city. uh we have made commitments to ESCOM which are going to be honored.

[00:03:04]Uh it should not be an issue. So they will have their lights on especially in the month of uh winter month.

[00:03:11]>> The matter now moves to the Joberg city council that will have to pass a council resolution on the signing of a distribution agency agreement. The commitment is that of a better coordination under the distribution agency agreement with the residents and businesses urged to continue paying their rates. The mayor is confident that the lights will be on come June and that the challenges with ESCOM will soon be a thing of the past. I'm Kati for SABC News in Johannesburg.