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CoJ plans to take over electricity distribution from Eskom
- ASAC warns this will be bad for businesses
- Eskom provides 38% of electricity distributed in the city
The City of Johannesburg (CoJ) plans to take over electricity distribution from the state-owned power company, Eskom. The CoJ plans to take over distribution operations through City Power. Eskom currently distributes about 38% of electricity consumed in the city. In response to the plans of the CoJ, the Association of South African Chambers (ASAC) has said, the plans will have a negative impact on businesses in the city.
The city “has started a process of negotiations with the view of taking over electricity supply service to the areas in the City of Johannesburg currently supplied by Eskom”, said Nthatisi Modingoane, a Spokesperson for the CoJ. ”There will be improved credit management and collections rate through the CoJ by-laws”, he added.
According to the ASAC, a takeover by the CoJ will result in an increase in electricity tariffs. David Mertens of ASAC has said the plan is only but good on paper. He stated that City Power is highly inefficient and should focus on improving its services. He added that the tariffs will not be any different from the current tariffs which are arguably too high. Mr. Mertens also added that the ASAC is currently in negotiations with the National Energy Regulator of South Africa (NERSA) on the matter.