City Power, the electricity distribution utility wholly owned by the City of Johannesburg, is seeking to deploy artificial intelligence (AI) to address revenue leakages costing the city nearly R6bn annually in technical and non-technical electricity losses. The proposed AI deployment is part of a broader effort to improve collections and combat electricity theft. The city's current system is plagued by incorrect billing, and the courts have previously chastised the city for its handling of the issue.
The overhaul of City Power's revenue collection system will involve procuring external experts to help with AI-driven vending management. The solution sought will enable monitoring of customers and meter auditing, detection of transaction exceptions, and improved reconciliation and deposit oversight. The third-party vendor will be required to integrate with at least two major banks, two retail groups, and cash vending machines for customers without data access.
To ensure that money from vending channels reaches the city, service providers must put systems in place to identify discrepancies and improve customer and meter data. The AI solution will help compare vending activity with amounts deposited into City Power's account. This move is expected to remedy shortcomings in the current system, which have frustrated residents and businesses.
City Power took over the billing process from the City of Johannesburg last year to address residents' frustrations with inaccurate accounts, discrepancies, and disputed meter readings. With the billing function now managed internally, City Power has full oversight of the customer journey, leading to fewer estimation errors and greater transparency in account management.
The City of Johannesburg suffers about R5.7bn in annual electricity losses, according to the auditor-general. In response, City Power has dedicated more money from its constrained budget towards infrastructure investment, maintenance, network upgrades, replacing vulnerable equipment, and efforts to reduce illegal connections and electricity losses.
The utility is working against an estimated R44bn infrastructure backlog, while its 2026/27 capital programme allocates R2.354bn to bulk infrastructure, network upgrades, secondary plant, metering, and renewable energy. City Power's efforts to address electricity losses and improve its billing system are part of a broader turnaround strategy approved by the city council.
The city's executive mayor, Dada Morero, has expressed concern over the electricity losses, stating that Johannesburg spends about R23bn a year buying bulk electricity from Eskom but loses more than R5bn due to unaccounted electricity consumption. City Power's move to deploy AI is expected to help address these issues and improve service delivery.
Key points
- City Power seeks to deploy AI to address R6bn annual revenue leakages in Johannesburg's electricity distribution system.
- The city's current system is plagued by incorrect billing, and the courts have previously chastised the city for its handling of the issue.
- City Power's efforts to address electricity losses and improve its billing system are part of a broader turnaround strategy approved by the city council.
