Johannesburg City Power needs R44 billion to replace ageing infrastructure

Johannesburg City Power has revealed that it requires R44 billion to replace its ageing infrastructure, which has been a significant factor behind technical electricity losses amounting to R1.5 billion.

The power utility is facing mounting challenges as outdated transformers and equipment continue to cause frequent breakdowns, leading to electricity losses even before it can be sold to customers.

According to the latest Auditor-General (AG) report, the entity is also dealing with non-technical losses—which include theft, illegal connections, and billing errors—amounting to a staggering R3.4 billion.

With the city’s power grid under immense strain, City Power is now scrambling for funding, reaching out to international investors and lobbying the Johannesburg municipality for a budget increase.

Decades of Neglect Causing Infrastructure Failure

City Power CEO Tshifularo Mashava has painted a grim picture of the state of the city’s electricity infrastructure, pointing out that many of its transformers have far exceeded their intended lifespan.

A transformer’s expected lifespan is approximately 35 years, but some of Johannesburg City Power’s transformers are nearly 90 years old.

“It means people 30 years ago should have changed these transformers – they didn’t. Twenty-five years ago, they didn’t. Twenty years ago, they didn’t. The administration of 2010 should have changed them – they didn’t. We are sitting in 2025; these things have not been changed,” Mashava explained.

This neglect over multiple administrations has now left City Power in a financial and operational crisis, where the cost of replacing outdated equipment is overwhelming.

Financial Struggles and Power Losses

The failure to upgrade infrastructure over the years has directly contributed to electricity losses before power even reaches paying customers.

These technical losses—caused by transformer failures, cable faults, and outdated substations—amount to R1.5 billion.

However, an even greater financial burden comes from non-technical losses, which stem from electricity theft, illegal connections, and billing inaccuracies, costing City Power an estimated R3.4 billion annually.

These losses put additional strain on the power utility, making it difficult to sustain operations, maintain infrastructure, and invest in upgrades.

Funding Crisis: No Money for Urgent Repairs

While City Power acknowledges the urgency of infrastructure upgrades, the R44 billion price tag to replace ageing systems remains out of reach.

“We need R44 billion to change it – we don’t have it,” Mashava admitted.

To address the shortfall, the entity is exploring alternative funding options, including:

• Lobbying the Johannesburg municipality to increase its budget allocation.
• Seeking international investors to secure financial backing.
• Exploring partnerships with private sector entities to help finance critical upgrades.

Despite these efforts, securing the necessary funds remains a major challenge, and delays in funding could mean continued power failures, load reduction, and increased maintenance costs.

How the Crisis Affects Johannesburg Residents

For Johannesburg residents, the state of City Power’s infrastructure has direct consequences on their daily lives.

• More Frequent Power Outages – Ageing transformers and substations are more likely to fail, leading to unplanned blackouts.
• Longer Repair Times – With limited resources, City Power struggles to replace or repair faulty equipment quickly.
• Higher Tariffs – To compensate for losses, the cost of electricity may rise, placing financial strain on households and businesses.
• Increased Load Shedding – Without modern infrastructure, City Power is unable to handle demand efficiently, making load shedding more likely and severe.

These challenges have left many residents frustrated as they battle constant power interruptions, unreliable service delivery, and the risk of paying more for worsening electricity supply.

Is There a Way Forward?

City Power’s financial and infrastructure crisis is not new, but it has now reached a critical point where urgent intervention is necessary.

Mashava insists that the utility is actively working on solutions, but without the necessary funding, progress will be slow.

“We have made some changes internally to improve efficiency, but we cannot overcome the major challenges without significant investment,” she explained.

While international funding and budget increases from the municipality may provide some relief, the long-term sustainability of Johannesburg’s electricity supply will depend on:

• Strict financial oversight to prevent mismanagement and corruption.
• A crackdown on electricity theft and illegal connections.
• A realistic, phased approach to infrastructure upgrades.
• Public-private partnerships to help fund major repairs and replacements.

Conclusion

Johannesburg City Power is in desperate need of a financial lifeline to address years of neglect and infrastructure decay.

With R44 billion required to modernize its systems, the entity is now racing against time to secure funding, prevent further losses, and restore stable electricity supply.

As the power crisis worsens, the big question remains—will City Power get the financial support it needs, or will Johannesburg residents continue to suffer under an increasingly unreliable electricity network?