Johannesburg's executive mayor, Dada Morero, and the minister of electricity and energy, Dr Kgosientsho Ramokgopa, announced a partnership between City Power and Eskom that will keep the lights on while servicing Joburg's R5.2bn debt. Details have yet to be finalised.

"There will be no switching off of power," said Johannesburg's executive mayor, Dada Morero, after talks with the minister of electricity and energy, Dr Kgosientsho Ramokgopa, and Eskom over Johannesburg's R5.2-billion debt to the power utility.

The mayor and Ramokgopa announced plans of a turnaround agreement on Tuesday, 26 May, following Eskom's notice last week threatening to reduce, interrupt or terminate the supply of electricity to certain bulk supply points in Joburg over the unpaid debt.

The agreement will allow Johannesburg to keep the lights on while servicing its debt to the power utility.

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It involves establishing a direct partnership between City Power and Eskom that will allow Eskom to provide "technical support" to the embattled municipal entity and to reduce technical and non-technical electricity losses. The plan also includes ringfencing revenues collected from electricity billing to service Johannesburg's debt, beginning in July.

The duo proposed that Johannesburg enter into a distribution agency agreement (DAA) -- a partnership that enables Eskom to provide direct technical support and handle electricity revenue collection for struggling municipalities.

Ramokgopa said, "The spirit and the letter of the DAA is that it's not a hostile takeover. If anything, what we are seeking to do...