City Power, the electricity utility serving Johannesburg, will from October 1, receive 70% of the city's electricity revenue within 48 hours of collection. This new arrangement is part of the National Treasury's Metro Trading Services Reform aimed at strengthening the finances and operations of municipal electricity and other trading services. The change is intended to provide City Power with more certainty over its cash flow, enabling it to meet its operating obligations more effectively.
The City of Johannesburg will retain the remaining 30% of the electricity revenue. According to City Power spokesperson Isaac Mangena, the new arrangement will allow the utility to use the funds to support payments to Eskom, contractors and suppliers, purchase materials, and invest in maintenance, repairs, and the electricity network. This move is expected to enhance City Power's financial stability and ability to provide reliable electricity services to the city.
The financial transfer arrangement between City Power and the City of Johannesburg does not change how customers receive their statements or pay their accounts. Residents will continue to receive consolidated municipal statements and can use existing City-approved payment channels, account numbers, and payment references. City Power has warned customers to be vigilant against scammers who may try to exploit the change by sending unfamiliar banking details or asking residents to pay individuals claiming to represent the utility.
The 70-30 split is an internal revenue arrangement and not an instruction to redirect customer payments. Customers do not need to open new bank accounts or change their payment methods. City Power has been handling the city's electricity billing function since July 2025, and the new arrangement concerns how collected revenue is allocated between City Power and the municipality.
National Treasury's reform programme includes ring-fencing revenue from metropolitan trading services so that the money can support their infrastructure and service obligations. City Power's implementation of this approach on October 1 aims to ensure that the utility's revenue is used efficiently to improve and maintain the electricity network in Johannesburg.
The new revenue arrangement is part of a broader effort to strengthen the financial and operational capabilities of municipal electricity utilities in South Africa. By ring-fencing revenue, City Power can prioritize investments in the electricity network, enhance service delivery, and improve customer satisfaction. The utility's ability to manage its finances effectively will be crucial in addressing the city's electricity needs.
City Power's new financial arrangement with the City of Johannesburg is set to take effect on October 1, marking a significant shift in how the utility manages its revenue. With the new 70-30 split, City Power is expected to improve its financial stability, enhance its services, and better manage its obligations to customers and stakeholders.
Key points
- City Power to receive 70% of Johannesburg's electricity revenue within 48 hours from October 1.
- The new arrangement aims to provide City Power with more certainty over its cash flow and enable it to meet its operating obligations.
- The change does not affect how customers pay their electricity bills or receive statements.
