The Johannesburg City Council this week approved the turnaround strategies for City Power Johannesburg and Johannesburg Water, as it aims to bolster essential municipal services across the city.

The strategies will now be submitted to the National Treasury in compliance with regulatory requirements.

City Power Johannesburg has been facing financial challenges exacerbated by rising electricity generation costs, a decline in revenue collection and operational shortcomings within its distribution network, the City of Joburg points out in a statement.

City Power developed a turnaround strategy aimed at addressing these issues. Key components include establishing a unified management accountability structure; enhancing cash revenue; strengthening the relationship between service delivery and the city; and restructuring institutional frameworks for optimal efficiency.

The strategy aligns with the Urban Sector Development Grant framework, emphasising the need for robust institutional reforms and sustainable management practices.

The City of Joburg highlights that the strategy has already yielded results, with City Power’s fourth-quarter performance figures reaching 81.82% and boosting the overall year-to-date output to 72.73% in the 2023/24 financial year –  its highest performance in the last five years.

The strategy focuses on five key areas, namely, creating a single point of management accountability, turnaround in cash revenue, financial surplus, clearly defined relationship between service and the city and a fit-for-purpose institutional structure.

This plan of action is indicated to have created an enabling environment for the municipal electricity utility to perform better all round, with several achievements in the previous quarter.

Between April and June, City Power installed 1 256 streetlights against a target of 700, exceeding its target by 556.

The utility also connected 3 495 dwellings with electricity supply, surpassing its target of 3 200.

City Power also obtained 26.47 MW of installed capacity of approved embedded generators on the municipal distribution network, exceeding its target of 9.50 MW.

Similarly, Johannesburg Water has embarked on a transformative journey outlined in its approved turnaround strategy.

This initiative aims to address longstanding challenges in water and sanitation services, including infrastructure deficiencies, financial sustainability and governance improvements.

Key features of the strategy include a detailed assessment of service delivery and financial performance; implementation of governance reforms and operational improvements; and development of comprehensive business and investment plans aligned with water services development goals.

The strategy adheres to National Treasury guidelines, focusing on effective utility management and the introduction of financing reforms.

By meeting these stringent criteria, Johannesburg Water seeks to enhance service reliability and efficiency for all residents.