City of Joburg debt tops R5.2bn as Eskom threatens supply cuts to parts of Johannesburg
Eskom has issued a formal notice warning that electricity supply to certain Johannesburg bulk supply points could be reduced, interrupted, or terminated after the City of Johannesburg and City Power allegedly failed to settle more than R5.2b in arrears.
Power utility Eskom has issued a notice of its intention to reduce, interrupt, and or terminate electricity supply to certain bulk supply points linked to the City of Johannesburg and City Power over unpaid electricity debt amounting to more than R5.2b
In a statement released on May 19, Eskom said the City of Johannesburg and/or City Power currently owes arrear debt totalling R5.255b, excluding a further current account balance of R1.58b due on June 5, 2026.
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According to Eskom, it has spent more than two years engaging with the metro in an effort to help it meet its payment obligations, but alleged continued defaults and non-compliance with the Electricity Supply Agreement have forced the utility to take further action.
“Eskom maintains it simply cannot be acceptable to the city’s residents and all South Africans that CoJ/CP is collecting electricity revenue but failing to pay over Eskom’s share,” the utility said.
Eskom warned that growing municipal and metro debt continues to place pressure on its financial sustainability and its ability to provide electricity at affordable tariffs. The power utility said revenue collection remains critical to improving its balance sheet and maintaining operations, adding that increasing unpaid municipal debt could ultimately affect electricity pricing and supply stability.
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Eskom also highlighted its ongoing efforts to work with municipalities across South Africa to find sustainable debt solutions through its Distribution Agency Agreement (DAA) initiative. The DAA is described as a long-term but non-permanent partnership agreement between Eskom and municipalities aimed at improving the financial and technical sustainability of electricity distribution.
Under the initiative, Eskom may assist municipalities with services such as smart meter installations, technical support, skills development, training, and revenue collection. Eskom noted that nine municipalities had already obtained council resolutions to sign Distribution Agency Agreements following consultation processes announced earlier this month.
The utility said it would continue engaging municipalities and metros nationally as part of efforts to stabilise electricity delivery and debt recovery.
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