A new data analysis tool developed by the South African National Energy Development Institute (SANEDI) will be used to help resolve billing and metering disputes between Eskom and municipalities. The tool was developed during a technical review of City Power’s R3,2 billion debt settlement with Eskom, announced by Kgosientsho Ramokgopa, Minister of Electricity and Energy, on June 24.
“City Power will repay Eskom over a four-year period while Eskom will write off approximately R830 million in penalties, interest and demand-related charges,” Ramokgopa said. This repayment will occur outside of winter periods. The debt settlement follows a November 2024 dispute in which Eskom issued a notice of intention to interrupt power supply to the city.
SANEDI CEO Titus Mathe said the technical review analysed metering data, billing practices and demand forecasting, focusing on the notified maximum demand component. “Our findings showed discrepancies in how demand peaks were recorded – often reflecting estimates, not actual meter readings, especially during load shedding periods,” Mathe said.
Ramokgopa said the tool developed through this process will serve as a model for resolving similar disputes with other municipalities. The settlement comes amid broader concerns about municipal financial management. In a recent parliamentary briefing, Auditor-General Tsakani Maluleke reported that only 16% of municipalities achieved clean audits for 2023/24 while 84% failed to meet basic governance standards.
