SOUTH AFRICA: City of Johannesburg Signs Transfer MoU With Eskom

  • CoJ signs MoU with Eskom
  • Plans to take over the services of Eskom in Johannesburg
  • CoJ to improve electricity supply through agreement

The City of Johannesburg (CoJ) has signed a Memorandum of Understanding (MoU) with state-owned utility Eskom in a bid to take over the electricity services from the latter. Once completed, Eskom will hand over its operations in Johannesburg to the City Power.

In a joint statement, the CoJ and Eskom confirmed the signing of agreements. The City of Johannesburg will take over the operations of Eskom. ”Eskom and City Power sign a memorandum of understanding on the possible transfer of Johannesburg electricity distribution to City Power Jhb,” the statement read.

”No transaction has been made yet, and in terms of the regulations, all affected stakeholders will be part of the decision-making process.” the statement read.

”The due diligence study will consider, among others, the state and value of the infrastructure that will eventually be sold to City Power, the outstanding debt owed to Eskom by customers, and other corporate information that will be material to an eventual agreement,” the statement added.

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