City of Johannesburg pays R4.3bn towards Eskom debt

City of Johannesburg pays R4.3bn towards Eskom debt

Eskom confirmed on Friday that it has received payments from the metro, which now total R4.3 billion.

Entrance to Eskom’s Kusile Power Station in Mpumalanga.
GCIS

However, the City of Johannesburg still owed the national power supplier more than R3.8 billion.

In May Eskom issued a formal notice of its intention to reduce, interrupt, or terminate electricity supply to parts of the City of Johannesburg, in terms of the Promotion of Administrative Justice Act (PAJA), as unpaid debt owed by the metro and its entity, City Power, continues to escalate.

At the time, Johannesburg Mayor Dada Morero has pleaded with Electricity and Energy Minister Kgosientsho Ramokgopa to prevent a potential power blackout linked to the city’s growing debt to Eskom.

Morero warned that diligent ratepayers could be affected if the electricity supply is disrupted 

In its statement on Friday, Eskom confirmed it was continuing to consider representations made by affected stakeholders, including residents, regarding the notice.

The PAJA process was initiated on 17 May 2026 after the City of Johannesburg’s power utility City Power accumulated overdue electricity debt of more than R5. 2 billion.

According to Eskom, the City committed to pay R5 117 736 000,00 by 21 August 2026.

“While Eskom acknowledges the progress made and the payments received, the overdue debt has not yet been fully settled. The PAJA consultation process remains ongoing and has been extended to 22 August 2026 to allow Eskom to complete its assessment of the representations received and to monitor the City's compliance with its electricity account obligations and the payment commitments it has made,” said Eskom spokesperson Daphney Mokoena.

“Since then, the City has made payments totalling R4 324 754 901.71. As at 24 July 2026, the overdue balance remains R3 801 864 153.45. R1 222 786 264 overdue current account and R2 579 077 889.00 outstanding balance of the settlement arrangement that was made by order of the High Court. The current electricity account of R2 636 676 621.00 is due on 3 August 2026,” added Mokoena.

The update comes just weeks after the National Treasury announced that it had frozen R13.5 billion in local government equitable share transfers for July to 69 municipalities nationwide due to persistent and serious statutory non-compliance.

Giving an update before Parliament’s joint oversight committee two weeks ago, Treasury’s Director General Duncan Pieterse said some municipalities would start receiving their funds after demonstrating compliance.

At the time,  Pieterse said 27 municipalities had received their funds, adding that more funds would be released to compliant municipalities weekly.

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