Article

City Power, responsible for electricity supply in Johannesburg, reported a R20 billion deficit and an operational loss of R1.978 billion in its latest quarterly report. The entity spends R2 billion more than it earns, with 42% of electricity purchased from Eskom lost to theft and vandalism.

Delayed payments to service providers have led to a decline in service delivery and increased criminal activity, including equipment theft. For the quarter, City Power's revenue reached R7.1 billion against expenditures of R9.1 billion, with operational overspending attributed to rising bulk purchase costs.

The entity faces competition from alternative energy sources as 10% of households use solar power, further threatening its financial stability. Despite a slight reduction in theft incidents, challenges remain, including a maintenance backlog and rising crime risks, requiring a comprehensive strategy for improvement.