City Power granted R19.9bn to address operational challenges

City Power has been allocated R19.9 billion for its operational expenditure budget to deal with streetlight repairs and installations, electricity failures, facility repairs and preventative maintenance to improve network stability.

FILE: City Power officials on 3 June 2020 disconnected illegal electricity connections at Phumula Mqashi informal settlement in Vlakfontein. The officials were joined by JMPD and SAPS officers. Picture: @CityPowerJhb/Twitter.

JOHANNESBURG – Joburg City Power has been allocated billions in its budget for the 2021-2022 financial year to address its many challenges among other targets.

Joburg Finance MMC Jolidee Matongo said that the money would also cover the cost of the utility’s turnaround strategy meant to enhance profitability and revenue.

City Power has been allocated R19.9 billion for its operational expenditure budget to deal with streetlight repairs and installations, electricity failures, facility repairs and preventative maintenance to improve network stability.

MMC Matongo has explained that this was on the back of expectations that the projected revenue, which would be raised through the 14.59% increases, would amount to R20.2 billion.

However, the entity was still of concern to the Joburg council, with Matongo explaining that it was no longer the cash cow it used to be for the city.

“The traditional notion of utilities to generate excessive revenue was eroding, for instance, large power users were moving away from the grid and this meant that revenue generated by City Power was at risk going forward,” said the MMC.

The allocation made to the utility would also cover the establishment of a programme management office to manage the transfer of Eskom areas of supply in Soweto, Ivory Park, Sandton and Orange Farm to City Power.

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