Eskom cancels talks on transferring supply areas to City of Cape Town 

13 May 2024

In a letter to Mayor Hill-Lewis last week, Eskom General Manager Mbulelo Yedwa indicates that the request for the transfer of supply areas to the City ‘was discussed and unfortunately it was not supported’ by Eskom’s executive. Further, ‘it was concluded that it is in Eskom’s best interest not to transfer or sell any assets due to the operational requirements of the Eskom business.’

In a public update to concerned residents at Elsies River Civic Centre on Monday, Mayor Hill-Lewis said the City ‘will definitely not give up on bringing more of Cape Town into the City-supply network, and residents can show their support by signing the petition backing a City takeover of Eskom-supplied areas’.

‘Taking over Eskom supply areas is an important step in our journey to providing load-shedding protection and reliable electricity services for all Capetonians, while we work to also end sole reliance on expensive Eskom power in favour of more affordable supply alternatives.

‘Right since the start of our local government term, we’ve held productive talks with former CEO Andre de Ruyter about transferring Eskom’s supply areas to the City. We had even progressed to monthly progress tracking meetings.

‘The City has already prepared the framework to appoint consultants to lay out the full transfer scenarios for the Eskom supply areas. All we needed was Eskom’s confirmation that we can go ahead. However, the newly-appointed Eskom executive under CEO Dan Marokane has quite bluntly cancelled their interest in transferring supply areas.

‘We know from the ongoing huge volume of complaints that residents have serious challenges with service standards in Eskom supply areas. Power outages often last several days with minimal updates from Eskom. This has even led to communities taking to the streets.

‘Over time, we want to bring all residents into the City supply network, which offers more reliable services and much better infrastructure maintenance, with a mammoth R4bn investment planned for our electricity grid over the next three years. We are also working to lessen reliance on Eskom power in favour of more affordable power sources over time.

‘We will definitely engage further with Eskom about their supply areas. We hope to at least get Eskom to agree that the City can start a consultant-led assessment of potential transfer scenarios for infrastructure, staff, and customers. Residents can show their support for this initiative by signing the petition,’ said Mayor Hill-Lewis.

The Mayor has written to successive Eskom CEOs calling for a resumption of talks following Mr de Ruyter’s departure. In June 2023 under acting CEO Calieb Cassiem, Eskom informed the Mayor’s office that Eskom was reverting back to ‘processing the matter through its governance structures’.

Mayor Hill-Lewis sent several follow-up letters, which have now culminated in Eskom’s May 2024 response that it no longer intends to pursue the transfer of supply areas at all.

The City's long-term intention is to distribute electricity directly to all customers in Cape Town, including those currently in Eskom supply areas.

This goal forms part of Cape Town’s Energy Strategy, which charts the long-term path to 2050 as part of ‘a great transition from a centralised supply of unreliable, costly and fossil fuel based Eskom energy, to an increasingly decentralised supply of reliable, cost-effective, carbon neutral energy from a diverse range of suppliers’.

Currently, around two-thirds of Cape Town’s electricity customers are served directly by the City, with the remaining third of customers served by Eskom.

The City intends for any adjustments to supply areas to undergo full financial and technical feasibility analysis to ensure affordability and quality of service for all customers. 

How to sign the petition

To show support for the City takeover of electricity services to residents in Eskom supply areas, visit:  https://www.change.org/p/support-city-of-cape-town-s-takeover-of-eskom-supply-area-services

Please also share the petition with affected Eskom supply area residents.

Issued by Media Office, City of Cape Town, 13 May 2024