By Johnathan Paoli
Power utility Eskom has issued a formal notice of its intention to reduce, interrupt or terminate electricity supply to certain bulk supply points linked to the City of Johannesburg and City Power after the metro’s arrears debt climbed to more than R5.2 billion.
In a statement released on Tuesday night, Eskom said the city and City Power currently owed the utility R5 255 421 994.16 in arrears, excluding a further current account payment of R1 582 093 993.32 due on 5 June 2026.
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“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 said it had spent more than two years engaging with the metro in an effort to assist it in meeting its payment obligations, but repeated defaults and failures to honour its Electricity Supply Agreement had forced the utility to escalate the matter.
Eskom warned that rising municipal debt continued to threaten its financial sustainability and could ultimately place further pressure on electricity tariffs.
“Eskom’s financial sustainability and ability to supply electricity at affordable prices is dependent upon its ability to improve its balance sheet by increasing revenue and reducing expenses. Revenue can only be increased by collecting electricity debts and/or increasing electricity tariffs,” the statement read.
The latest confrontation marks a renewed escalation in the long-running dispute between Eskom and Johannesburg over unpaid bulk electricity accounts.
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In November 2024, Eskom similarly threatened to interrupt power supply to Johannesburg over unpaid arrears amounting to approximately R4.9 billion, as well as additional current charges nearing R1.4 billion.
At the time, the city had raised a R3.4 billion overbilling dispute against Eskom, although Eskom said the city’s counterclaim had been dismissed with costs.
The standoff eventually required intervention from Electricity Minister Kgosientsho Ramokgopa, who mediated discussions between the two parties.
The current dispute also unfolds against the backdrop of a growing national municipal debt crisis facing Eskom.
Earlier this month, the utility announced that nine municipalities across the country had received council resolutions authorising them to sign Eskom’s Distribution Agency Agreements (DAAs), which form part of its Active Partnering initiative aimed at stabilising municipal electricity systems.
The municipalities include Nketoana Local Municipality, Mpofana Local Municipality, Masilonyana Local Municipality, Nala Local Municipality, Ngwathe Local Municipality, Renosterberg Local Municipality, Thembelihle Local Municipality, Govan Mbeki Local Municipality and Kgetlengrivier Local Municipality.
Under the DAA framework, Eskom partners with municipalities for a defined period to improve billing systems, maintain electricity infrastructure and strengthen debt collection processes.
The agreements also allow Eskom to assist municipalities through skills development, installation of smart meters and revenue collection support.
According to Eskom, municipal debt nationally has now ballooned to R111.6 billion despite interventions by the National Treasury through the municipal debt relief programme.
City of Johannesburg spokesperson Nthatisi Modingoane had not responded to questions from Inside Metros at the time of publication.
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