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Eskom and City Power begin the process of transferring power distribution

City Power could soon be responsible for the distribution of electricity to more areas of Johannesburg, taking the responsibility from Eskom.

On Thursday, Eskom and City Power signed a memorandum of understanding in that regard.

Ultimately, if successful, Eskom would sell or transfer the distribution of electricity in parts of Johannesburg currently supplied by Eskom to City Power. These areas include Soweto, Sandton, Orange Farm, Ivory Park, Diepsloot and surrounding areas.

City Power will be conducting it own due diligence study as regards Eskom’s infrastructure and assets in the areas mentioned above.

“The due diligence study will consider, among others, the state and value of the infrastructure that would eventually be sold to City Power, the outstanding debt owed by customer to Eskom, and other corporate information that will be material to an eventual agreement,” Eskom and City Power said in a joint statement on Thursday.

Once that study is complete, regulatory approval will be needed from the National Energy Regulator of South Africa, National Treasury and the Department of Mineral Resources and Energy. Other stakeholders – including customers – who would be affected by this transfers, will be able to participate in a public participation process as well.

“The parties commit to keep the public and affected stakeholder informed of the progress of the talks,” the pair said.

Of course, Eskom will still be handling generation so it’s unlikely that loadshedding will be avoided completely but for Johannesburg residents at least there will be one port of call for all power matters.

[Image – CC 0 Pixabay]

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