City of Johannesburg Mayor Mpho Moerane
Image sourced via Twitter
Johannesburg ANC withdraws statement on electricity deal with Eskom
The Johannesburg ANC retracted its statement about power purchase agreement it had signed with Eskom after the power supplier dismissed the claim as “totally untrue.”
City of Johannesburg Mayor Mpho Moerane
Image sourced via Twitter
The African National Congress (ANC) in Johannesburg withdrew its statement about a new deal, which would have reportedly solved the city’s electricity woes. The party later retracted the statement after Eskom dismissed the claims made as “totally untrue.”
JOHANNESBURG ANC WITHDRAWS CLAIMS
According to the statement, on Friday, 8 October, the City of Johannesburg was in the process of signing a power purchase deal with Eskom that would add additional megawatts to the city’s power supply and increase supply to various communities.
“The agreement we are signing answers the questions that have been in the minds of many since we started speaking about plans to take over the supply of electricity by Eskom in Johannesburg communities. The partnership will guarantee a reliable power supply in the City,” said Joburg Mayor Mpho Moerane.
Gauteng Premier David Makhura also expressed his happiness at the deal, which he described as a “concrete step” on the city’s way to enhance its own electricity capacity.
Eskom denied that the deal was signed on Friday, as was claimed by the ANC in Johannesburg. The power utility countered and said that only a memorandum of understanding was signed and the deal, which would see City Power supply electricity to areas, including Soweto, Orange Farm and Ivory Park, could take years before coming to pass.
“The municipality must still do the due [diligence] on their part to confirm that what we have proposed to them is acceptable,” said Eskom spokesperson Sikonathi Mantshantsha to Bloomberg.
“They are in the process of appointing transaction advisors to assist them in the development of the business case.”
The Eskom spokesperson said debt needs to be paid to the power supplier, the City of Johannesburg would need to buy infrastructure from Eskom. The government – DMRE, NERSA and COGTA – as well as the public, would also need to participate in the process before such a deal was completed.
ANC regional spokesperson Sasabona Manganye said the party had erred with its premature announcement.
