Eskom threatens to cut power to Joburg over R6.8 billion owed – again
Power utility Eskom has once again threatened to cut power to the City of Joburg over unpaid bills and money soon due, which has now reached R6.8 billion.
Eskom said that the City of Johannesburg and its utility, City Power, currently owe Eskom an arrear debt of R5.25 billion, excluding the current account, which is due on 5 June 2026 for a further R1.58 billion.
Despite working with the city over the past two years to support the metro in meeting its payment obligations, the city has continued to fail to fulfil its side of the process, the utility said.
“As a result of [the city’s] continued failure to honour its Electricity Supply Agreement with Eskom, including repeated defaults, Eskom has been forced to issue a notice of its intention to reduce, interrupt and/or terminate the supply of electricity to certain bulk supply points,” it said.
Eskom said it is ‘simply unacceptable’ for the city’s residents and South Africa as a whole to carry the burden of the city’s debt.
“COJ/CP is collecting electricity revenue but failing to pay over Eskom’s share,” it said.
“While Eskom continues to focus on being cost-efficient, escalating municipal and metro arrear debt undermines these efforts. “
Eskom added that its financial sustainability and ability to supply electricity at affordable prices depend on improving its balance sheet by increasing revenue and reducing expenses.
“Revenue can only be increased by collecting electricity debts and/or increasing electricity tariffs,” it said.
“Across the country, many municipalities and metros are working with Eskom to develop sustainable debt solutions, and Eskom is continuing to accelerate its support for this approach.”
Eskom announced on 5 May that nine municipalities have received council resolutions to sign Distribution Agency Agreements following consultation processes.
The DAA is a long-term, non-permanent contract between a municipality or metro and Eskom, where the utility takes over services like billing.
It also includes skill development and training, replacement or installation of smart meters, as well as revenue collection on behalf of the municipality.
Repeat threat
The latest threat from Eskom follows earlier threats, the most notable of which was a clash between the utility and the city in November 2024.
At the time, Eskom threatened to cut Joburg off over R4.9 billion in unpaid bills and an additional R1.4 billion in impending amounts.
In response, the City of Joburg filed a counterclaim, alleging that Eskom had incorrectly billed the city and had actually overbilled it by R3.4 billion.
This led to a stalemate between the two that escalated to the point that the National Government, through Electricity Minister Kgosientsho Ramokgopa, had to step in to mediate.
The latest threat comes at a particularly sensitive time for the city and its executive.
A leaked letter from Finance Minister Enoch Godongwana to Joburg Mayor Dada Morero recently exposed the deteriorating state of the city’s finances.
The threat of cut-off also comes ahead of Morero’s State of the City Address on Wednesday (20 May).
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