Johannesburg – City Power is facing a R44.25 billion infrastructure backlog, worsening finances and serious leadership and staffing shortages, according to a new report by the Centre for Development and Enterprise (CDE).
The CDE said Johannesburg’s electricity utility was in “deep trouble”, with deteriorating infrastructure, weak revenue collection and prolonged vacancies threatening reliable service delivery.
Between July 2025 and March 2026, City Power recorded 2.1 million forced power interruptions, taking an average of 11 hours to restore each outage.
The organisation said 60% of the outages were caused by deteriorating and outdated networks, while customers experienced an average of 20.6 hours without electricity during the period. Some customers were left without power for weeks.
CDE executive director Ann Bernstein said the utility needed urgent intervention rather than structural changes.
Capable people
“To turn City Power around, a new City government will need to put capable people in charge, give the utility control over its own revenue, collect what it is owed, and bring in the private sector,” Bernstein said.
City Power’s financial position has also deteriorated, with its deficit reaching R4.3 billion in 2025, excluding capital grants and contributions. Its net internal overdraft with the City of Johannesburg stood at about R19.1 billion by 31 March 2026.
The CDE said electricity revenue was being transferred into the City’s consolidated revenue pool instead of being ring-fenced for City Power.
The utility was also owed about R13.3 billion by customers at the end of June 2026.
Electricity Minister Kgosientsho Ramokgopa described the extent of lost revenue by saying: “For every R100 of bulk purchases, (City Power) can only reticulate about R70. They’ve already lost R30, even before they can collect.”
Permanent CEO and stronger leadership
The report also found major staffing gaps. Of City Power’s 278 professionally qualified posts in 2024/25, 122 were vacant, while 36 of 50 senior technician positions were unfilled.
The CDE has called for a permanent CEO and stronger leadership, improved revenue collection, clearer financial ring-fencing and greater private-sector participation.
Bernstein said the turnaround would require careful sequencing.
“It is imperative to do a few decisive things in the right order: stabilise leadership, secure the cash, stop the bleeding, keep the lights on,” she said.
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Compiled by Betha Madhomu
