The Minister of Electricity and Energy, Dr Kgosientsho Ramokgopa, and the Executive Mayor of the City of Johannesburg, Clr Dada Morero, have announced the full settlement of the R5.25b overdue electricity debt owed by the City of Johannesburg and City Power (CoJ/CP) to Eskom.

On August 21, Eskom confirmed that it had received the final payment from CoJ/CP, bringing the accumulated overdue electricity debt of R5 255 421 994.16 to a full settlement.

The settlement follows an intervention and mediation process led by the Ministry of Electricity and Energy, which brought together senior leadership from the City, City Power and Eskom to resolve long-standing billing disputes that had raised concerns about the security of electricity supply.

Morero said the City remains committed to ensuring that all future Eskom accounts are paid on or before their due dates, reinforcing financial discipline and reliable service delivery.

Following the settlement, Eskom has officially withdrawn the Promotion of Administrative Justice Act (PAJA) process initiated on May 17 to address the outstanding arrears.

Ramokgopa welcomed the resolution, saying it demonstrated the effectiveness of the intergovernmental relations model in addressing the dispute.

“We are pleased to see this matter reach a definitive conclusion. This resolution reinforces the effectiveness of the Inter-Governmental Relations model we have championed,” said Ramokgopa.

“By maintaining an open dialogue and a structured task team, we have ensured that the residents and businesses of Johannesburg continue to receive an uninterrupted power supply while safeguarding the financial sustainability of our national utility.”

Morero described the settlement as a significant milestone in the City’s efforts to strengthen financial sustainability and responsible governance.

“Settling the R5.25b overdue debt demonstrates our commitment to honouring our obligations while protecting Johannesburg’s residents and businesses from disruptions to electricity supply,” he said.

“We remain committed to maintaining current payments, reducing electricity losses through theft and vandalism, investing in critical electricity infrastructure, and working closely with Eskom to build a more reliable and sustainable energy future for our city.”

Eskom and City Power said they would continue working together, focusing on infrastructure maintenance, reducing electricity losses from theft and vandalism, and implementing data-sharing protocols.

The collaboration aims to support the long-term reliability of the electricity supply to Johannesburg, South Africa’s economic and financial hub.

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