The City of Johannesburg is losing almost R8.5 billion annually through water and electricity losses, placing further strain on a municipality already grappling with financial sustainability concerns.
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The figures emerged during the city’s appearance before Parliament’s Standing Committee on Public Accounts (SCOPA) on Tuesday, where Mayor Dada Morero and senior officials were questioned about governance failures, audit outcomes and the city’s financial position.
Last month, Eskom again threatened to cut power to Johannesburg over unpaid electricity bills, highlighting the financial pressures facing South Africa’s economic hub.
Joburg water and electricity losses cost city billions
According to documents submitted to Parliament, the City of Johannesburg recorded combined utility losses of R8.49 billion during the 2024-2025 financial year.
Electricity losses accounted for R5.67 billion, while water losses amounted to R2.82 billion.
“Today we know and understand the challenges related to Joburg Water, which is currently faced with non-revenue water losses of about 44.7%,” Morero told members of Parliament.
He added that City Power’s total electricity losses remain around 30%.
The city’s presentation showed that non-technical electricity losses, including illegal connections and metering challenges, amounted to R3.96 billion, while technical losses totalled R1.71 billion.
Water losses included R2.03 billion in physical losses and R790 million in commercial losses.
City outlines plans to reduce losses
Officials told Parliament that utility losses continue to place pressure on cash flow, debt collection and the city’s broader financial sustainability efforts.
The city reported a slight improvement in non-revenue water, which declined from 46.18% to 44.79% year-on-year.
To address the issue, Johannesburg Water is focusing on leak repairs, pressure management and infrastructure upgrades, while City Power is implementing meter replacement programmes, revenue assurance initiatives and the removal of illegal electricity connections.