Johannesburg’s City Power is grappling with a R44bn financial backlog, rampant vandalism, and severe revenue losses, leading to deferred critical infrastructure projects.The utility loses 30% of electricity purchased from Eskom, with approximately one in seven units generating no billing revenue.Infrastructure built in the 1940s, coupled with theft and vandalism, causes 60% of outages, while Eskom-related faults account for 15%.The overdraft has surged by 34% in a year, exacerbated by historical inter-city loans and interest charges.Cable theft hotspots include Randburg and Lenasia, with incidents costing over R311,000 recently.Security costs have overrun the budget by R37.9m due to enhanced measures.Key projects like the Eikenhof substation upgrade, critical for water supply to 60% of Johannesburg, are delayed, risking water security.

Experts warn that deferring such projects undermines turnaround strategies and could lead to prolonged water disruptions in areas like Soweto and Randburg.The utility faces a R1.5bn creditor debt and struggles with delayed payments affecting contractor work, highlighting systemic financial and operational challenges.