City Power has acknowledged mounting pressure on its supply chain and procurement systems, but insists service delivery remains operational despite growing challenges around stock availability, supplier payments and procurement delays.

The utility confirmed that while its supply chain remains functional, it is operating in a constrained environment due to a heavy reliance on the Request for Quotation (RFQ) procurement process rather than long-term supplier contracts. Currently, only 26.5% of materials are sourced through active contracts, while 73.5% are procured through RFQs – a process City Power said is more administratively demanding and slower to manage.

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“While this approach ensures transparency and competitiveness, it is more administratively intensive than contract-based procurement,” said City Power spokesperson Isaac Mangena. Mangena also confirmed that delayed payments exceeding R12m have affected some suppliers, contributing to roughly R27m worth of overdue cable accessory deliveries. However, he stressed this does not amount to a collapse in supplier relationships, but rather reflects ‘timing and process-related challenges’.

Concerns recently surfaced after claims circulated that depots were running empty and technicians were being forced to ‘make plans’ with scraps of remaining material. City Power rejected this description, saying depots still hold about R334m in stock, although this is down from R449m last year.

The utility also acknowledged a measurable decline in material availability over time. According to Mangena, material availability dropped from 98.4% in July 2024 to 88.7% in March 2026, reflecting increasing pressure on inventory levels despite ongoing efforts to maintain operational readiness. He added that inventory levels have tightened, particularly in high-demand items such as high, medium and low-voltage cables, transformers, poles, circuit breakers, cable accessories and personal protective equipment.

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To stabilise the situation, City Power said it is working to renew supplier contracts, improve procurement efficiency and reduce dependence on RFQ-based sourcing. “Residents can therefore be assured that City Power remains committed to maintaining service reliability.”
The utility maintained that residents should not interpret the current situation as a systemic operational failure, stressing that technical teams remain active across the network while measures are implemented to strengthen the supply chain and restore procurement stability.