City Power, a leading power utility in South Africa, has embarked on a new journey towards financial sustainability and a more reliable electricity network. The company's board chairperson, Makhosini Kharodi, outlined the strategy, which is built on the foundation laid by the CEO, executive committee, and employees. The focus is on implementation, strengthening what is working, and addressing areas requiring greater attention. The board will provide strategic direction and oversight, support the executive team, and monitor progress.
The integrated five-year execution programme for 2026 to 2031 is part of City Power's broader 10-year trading reform strategy. The programme links plans to measurable results and captures the company's journey through three stages: stabilising, modernising, and sustaining. The stabilising stage involves strengthening financial stability, controlling electricity losses, improving reliability, and ensuring accountability. This stage is critical, given that electricity losses are approximately 30%, representing an estimated annual leakage of R5.7bn.
The modernising stage will leverage technology, data, smart metering, and improved network visibility to enhance operations and customer service. City Power aims to reduce electricity losses to 18.57% by 2030/31 and install 44,138 smart meters by 2026/27 and 280,000 over the broader reform period. The intelligent distribution system programme will start with 50 priority mini-substations and expand to a further 200 nodes. This initiative is expected to improve network reliability and customer confidence.
Financial recovery and operational improvement are closely linked, with reducing losses and improving collections strengthening City Power's ability to invest in the network. The company's R3.1bn deficit in the 2024/25 financial year highlights the need for urgent action. Bulk electricity purchases accounted for approximately 71% of operating expenditure, underscoring the importance of efficient operations. The five-year programme reflects approximately R12.48bn in capital expenditure within a broader 10-year programme of approximately R28.8bn.
Early priorities for City Power include revenue protection, smart metering, reducing non-technical losses, intelligent distribution systems, and emergency network stabilisation. Implementation will progressively reduce dependence on reactive repairs, restore plant, strengthen network redundancy, and expand supervisory control and data acquisition. The goal is to provide customers with fewer and shorter outages, accurate billing, improved fault resolution, stronger digital services, and clearer communication.
Delivery of the new strategy depends on procurement discipline, contract management, supplier performance, engineering capacity, and developing people through mentorship, succession, and targeted recruitment. City Power's future plans also involve integrating Independent Power Producers, wheeling, small-scale embedded generation, battery storage, and alternative energy. The company must ensure that its network and organisational capability keep pace with the changing electricity sector and customers' growing choices.
The first 100 days of implementation will focus on strengthening control, verifying baselines, addressing cash and electricity losses, progressing metering and intelligent distribution systems, prioritising capital expenditure, and assigning delivery owners. By Day 100, an integrated execution dashboard and clear evidence base should support regular monitoring and accountability. Ultimately, City Power aims to build an organisation that serves the people of Johannesburg better and continues progressing long after the current leadership term has ended.
Key points
- City Power aims to reduce electricity losses to 18.57% by 2030/31.
- The company plans to install 280,000 smart meters over the broader reform period.
- City Power's new strategy involves a R12.48bn capital expenditure over the next five years.
