City Power to ring-fence electricity revenue from October

JOHANNESBURG – City Power will implement financial ring fencing from 1 October as part of its turnaround programme aimed at improving financial accountability, operational efficiency and service delivery.

Under the new arrangement, the City of Johannesburg will continue collecting electricity payments from customers through existing municipal payment channels. However, 70% of electricity revenue collected on behalf of City Power will be transferred to the entity within 48 hours, while the City will retain the remaining 30%.

City Power says the arrangement will provide greater certainty over the revenue available to it, allowing the entity to better plan and manage payments to Eskom, contractors and suppliers, procure critical materials, maintain infrastructure and invest in the electricity network.

The changes are aligned with National Treasury’s Trading Services Reform Programme and support requirements linked to external funding partners, including KfW-funded infrastructure programmes.

Customers will not need to change their municipal account numbers, payment references, bank accounts or payment methods. They will continue receiving consolidated municipal statements from the City of Johannesburg and paying through existing approved channels.

City Power warned customers to be alert to fraudsters who may claim that ring fencing requires payments into a new bank account.