Do you know how Johannesburg gets its electricity? It’s all thanks to City Power. City Power Johannesburg is a state-owned power utility. It is vital for the city.
Let’s talk about City Power. It is wholly owned by the City of Johannesburg. Its main job is to buy electricity. It buys it from power producers. Then, City Power supplies that electricity to the public. The company also installs and maintains electrical infrastructure in Johannesburg. City Power supplies electricity to 3.2 million people. These people live in the Greater Johannesburg Metropolitan Area.
City Power was established on January 1, 2000. It became a separate company from the City of Johannesburg. In December 2001, City Power got a license to trade. This license came from the National Energy Regulator of South Africa. It’s quite a milestone.
In 2022, City Power took over electricity distribution in several areas. These included Soweto, Sandton, and Orange Farm. Eskom used to handle these areas. This was a big change for Johannesburg.
Like any large entity, City Power has faced challenges. In 2013, a smart meter contract sparked controversy. The contract was worth R1.2 billion. It was awarded to Edison Power.
Load shedding is a significant issue for City Power. The company gets 90% of its power from Eskom. It aims to reduce this reliance. In 2014, City Power planned to remotely switch off geysers. This was to lessen the impact of load shedding. In 2021, it resolved to generate electricity itself.
In 2023, City Power aimed to cut load shedding by three stages. It planned to use smart meters. Recommissioning gas turbines would help too. The company also sought power from independent producers.
That same year, City Power had to replace many mini-substations. These replacements cost R200 million. Load shedding, theft, and vandalism caused the damage.
City Power is upgrading all meters to smart meters by November 2024. This upgrade addresses a technical limitation. It also allows City Power to remotely limit electricity usage.
Since November 2023, City Power manages its own load shedding schedule. From June 2024, it implemented load reduction.
City Power plans to source more power independently. By 2026/27, it hopes to get 480MW from various sources. These include rooftop solar, independent producers, and waste-to-energy projects.
In July 2023, Johannesburg introduced wheeling tariffs. These tariffs charge for using the grid.
In August 2023, City Power secured 92MW from four IPPs. These IPPs use waste-to-energy, gas-to-power, and solar generation. In April 2024, the John Ware Gas Turbine Power Station was recommissioned.
City Power has worked to recover unpaid revenue. It has disconnected delinquent customers. Penalties are imposed for illegal connections.
Businesses and households owe City Power a lot of money. The Apartheid Museum and the Gauteng Treasury were among those disconnected. Many others are disconnected to force payment.
City Power is vital to Johannesburg. It faces many challenges. It adapts and innovates to meet the city’s needs. Next time the lights come on, remember City Power.