Cooler heads prevailed when City Power decided not to cut off electricity to Charlotte Maxeke Johannesburg Academic Hospital over a reported R41m in unpaid electricity bills. While a potential humanitarian crisis has been avoided, City Power still has its sights set on collecting what it is owed.

The Gauteng Department of Health and the administration at Charlotte Maxeke Johannesburg Academic Hospital were able to breathe a collective sigh of relief on Thursday after City Power made a U-turn on its threats to cut off electricity to the public hospital because of its non-payment of electricity bills.

This comes after the Gauteng Department of Cooperative Governance and Traditional Affairs (Cogta) stepped in and mediated the payment stand-off between City Power and the Gauteng Department of Health.

City Power's general manager for revenue management, Thami Mathiso, told Daily Maverick, "Our commitment today with Cogta, which was in good faith, was that we will not cut off Charlotte Maxeke Hospital, considering the humanitarian crisis it's going to create."

After issuing a warning this week that hospitals behind on their electricity bills would be cut off, City Power on Thursday gave Charlotte Maxeke hospital four hours to make alternative arrangements at other facilities for patients in critical condition.

The hospital reportedly owes the utility R41-million, making it City Power's biggest debtor.

However, Gauteng's Cogta MEC, Mzi Khumalo, and its Finance MEC, Jacob Mamabolo, negotiated a truce between the company and the hospital.

City Power's Mathiso said Cogta agreed that if the...