The City of Ekurhuleni and Eskom have reached an agreement on a payment plan to settle the municipality’s outstanding electricity debt, following a notice that raised concerns about a possible reduction of bulk electricity supply.

In a joint statement released on March 13, the parties confirmed that an agreement has been reached to address the city’s arrear account while ensuring current electricity payments are made when due.

According to the statement, the city has already paid R1.7 billion of the R3.4 billion owed to Eskom during March. The remaining balance will be settled over a period of 18 months as part of the agreed payment plan.

The agreement will also be made an order of court, which will conclude all active litigation between Eskom and the municipality relating to the bulk electricity supply.

“These payments represent a significant step towards regularising the city’s electricity account and addressing historical obligations, while ensuring that current obligations are met in line with the agreed payment terms,” the statement said.

Residents and businesses across Ekurhuleni have also been assured that there is currently no immediate risk of bulk electricity supply being switched off.

Both Eskom and the municipality have encouraged residents to continue paying for municipal services, noting that revenue collection remains essential to maintaining and improving service delivery. The two parties said they remain committed to transparent engagement and will continue updating the public as discussions progress.