Eskom Johannesburg

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MOU signed: Johannesburg’s municipality set to takeover from Eskom

Eskom and the City of Johannesburg have signed a memorandum of understanding. The municipality is due to become the city’s power supplier.

Eskom Johannesburg

Image by Flickr

The City of Johannesburg (CoJ) has moved closer to taking over as the city’s electricity provider from Eskom. This was confirmed on Thursday 14 October.


As The South African reported on 4 October, the CoJ confirmed it had two meetings with Eskom with the view of taking control of the city’s power supply using a fresh concept of an ‘energy mix’ that includes gas solutions.

The two government entities have now taken the biggest step towards the groundbreaking move.

“Eskom and City Power sign a memorandum of understanding on the possible transfer of Johannesburg electricity distribution to City Power Jhb,” it was announced in a joint statement.

The two organisations said they signed the MOU with a view to concluding a deal that will see Eskom selling or distributing electricity in the parts of Johannesburg that have been getting power supply.

“No transaction has been made yet, and in terms of the regulations, all affected stakeholders will be part of the decision-making process.


The CoJ assured the national power supply that it will thoroughly study Eskom’s infrastructure and assets in the targeted areas. The locations include Soweto, Sandton, Orange Farm, Ivory Park, Diepsloot, and surrounds.

“The due diligence study will consider, among others, the state and value of the infrastructure that will eventually be sold to City Power, the outstanding debt owed to Eskom by customers, and other corporate information that will be material to an eventual agreement,” the brief added.

“Should an agreement be reached on the discussions, the parties will seek the requisite regulatory approvals and give the affected customers an opportunity to contribute to a settlement in a public participation process.”