Curro Holdings has challenged City Power’s decision to disconnect electricity supply to Curro Midrand Sagewood in Noordwyk, describing the action as unlawful and maintaining that power was restored within an hour.

The response follows a June 23 operation in which City Power’s revenue protection unit, assisted by City Power security and the Johannesburg Metropolitan Police Department (JMPD), disconnected electricity to the private school over an alleged outstanding debt of R9.3m.

City Power said the school was among four high-value defaulters identified during the operation, with the combined outstanding debt across the properties amounting to R38.1m. According to the utility, the arrears date back to 2023 despite ongoing engagement and recovery efforts.

Read more: City Power defends Curro Sagewood disconnection, cites lawful revenue recovery process

City Power spokesperson Isaac Mangena said the utility had exhausted several avenues to recover the outstanding amount before taking enforcement action.

City Power acting CEO Charles Tlouane expressed concern over the size of the debt, noting that a private educational institution of Curro’s stature would generally be expected to maintain its financial obligations.

Curro, however, has strongly disputed both the debt and the disconnection. In a statement provided to Midrand Reporter, Curro Holdings stated that a City Power team, accompanied by JMPD officers, arrived at Curro Sagewood on the morning of June 23 and disconnected the school’s electricity supply without prior notice.

“The disconnection was unlawful, and power was restored within an hour. In July 2021, Curro lodged a formal billing dispute with the City of Johannesburg regarding the amount claimed. The dispute has been amplified with further substantiation and is supported by an independent expert report confirming that City Power’s billing is incorrect.”

The school group states that the alleged debt originated from clearance fees attributable to a previous property owner, which the City of Johannesburg improperly loaded onto Curro’s municipal account.

Also read: Curro Sagewood disputes R9.3m debt after City Power disconnects electricity supply

“The amount was initially reversed by the city on its own records, only to be added back in subsequent invoices as purported unpaid utilities with no breakdown or substantiation provided.”

Curro further states that during protracted engagement between the parties and their legal representatives since 2022, the City of Johannesburg’s own authorised officials agreed that Curro did not owe the amount in question and that the dispute should be resolved accordingly.

“The city has failed to honour that undertaking. In 2025, having exhausted all administrative avenues, Curro instructed its attorneys to approach the high court to compel the city to give effect to what its own officials had agreed. That application is pending. The city indicated it would oppose, but has not filed any papers, and Curro has applied for a set-down date.”

It is in these circumstances, with a formally registered dispute and pending high court proceedings, that City Power disconnected electricity supply to a functioning school. The school’s executive head presented documented proof of the live dispute to the disconnection team on site.

The team, according to Curro, refused to consider it and proceeded. Curro’s legal representatives contacted the city’s attorneys, and supply was restored within the hour.

“Curro pays all current monthly municipal charges for electricity and water punctually and in full. There are no arrears on current consumption.

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The only amount withheld is the disputed sum, which is ringfenced in accordance with the Municipal Systems Act pending finalisation of the dispute. During the brief disconnection, the school operated on backup power and no teaching or learning was disrupted.”

Curro notes that while the disconnection and reconnection occurred on June 23, City Power chose to issue a media statement on June 24 that contains statements that are allegedly factually incorrect and reputationally damaging.

Curro is pursuing all available remedies in respect of the unlawful disconnection and the city’s continued failure to resolve this matter through the processes it agreed to. “Curro always pays what it legitimately owes.”

City Power defends its actions

In response, City Power had acknowledged a public statement issued by the Mouton Education Foundation NPC, trading as Curro, regarding the interruption of electricity supply to Curro Midrand Sagewood School in Noordwyk and has moved to clarify its position on the matter.

The utility maintains that the disconnection was carried out lawfully as part of its revenue protection and credit control programme, in line with the Municipal Systems Act, applicable credit control and debt collection by-laws, and the City of Johannesburg’s revenue management framework.

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City Power rejected claims that its earlier public statement, issued on June 24, was false, unlawful, or defamatory. “The statement was issued on the basis of information reasonably available to the utility at the time and reflected the operational facts as recorded on City Power’s internal systems,” said Mangena via a statement on June 25.

According to Mangena, the decision to interrupt electricity supply was informed by SAP records and internal billing systems, which indicated substantial arrears on the account at the time of action.

He said there was no indication at that stage of an active dispute recorded in a manner that would have prevented enforcement action under its statutory debt recovery mandate.

City Power further argued that operational decisions must be made based on available information at the time, and that subsequent disputes or engagements do not automatically render earlier enforcement actions unlawful. “These matters must be determined through the appropriate legal and administrative processes.”

City Power also disputed claims suggesting the interruption was caused by an administrative delay or system error, stating that such allegations remain unverified. Mangena added that the full history of the account, including previous engagements, reconciliations, and any disputed billing components, is still under review.

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He said it is committed to compiling a complete and accurate account record, which includes verification of billing data, internal system information, and documentation submitted by Curro. He added that the objective of the process is to ensure any outstanding issues are resolved on the basis of verified information and within the framework of applicable law.

While maintaining its position, Mangena said City Power remains open to continued engagement with Curro and has invited the institution to submit all relevant supporting documentation relating to its dispute.

The utility stressed that constructive engagement and evidence-based resolution remain central to resolving complex account disputes. Pending the completion of the verification process, he said it may issue further clarification should it be necessary, without admitting liability.

The utility also noted that parts of the matter are now before the courts and said it will respect the judicial process and refrain from commenting further on issues under litigation.

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