Johannesburg clears R5.25bn Eskom debt in full, averting threat to power supply

The City of Johannesburg has settled its outstanding R5.25 billion electricity debt to Eskom, ending a dispute that threatened the stability of the power supply to the country's economic capital. This resolution follows a mediation process led by the Department of Electricity and Energy, in collaboration with the City of Johannesburg and Eskom, to address long-standing billing issues.

The final payment of R5,255,421,994.16 has been received by Eskom, bringing the total overdue amount owed by the City and City Power to zero. This settlement marks the withdrawal of the Promotion of Administrative Justice Act (PAJA) proceedings that were initiated by Eskom on May 17, 2026, over the unpaid arrears. The intervention by the Minister of Electricity and Energy, Kgosientsho Ramokgopa, has underscored the importance of government cooperation and the effectiveness of the Inter-Governmental Relations (IGR) model in resolving such financial disputes.

The settlement ensures that the residents and businesses of Johannesburg will continue to receive uninterrupted power, while also addressing the financial pressures faced by the national utility. The City's Executive Mayor, Dada Morero, hailed the payment as a significant milestone in the municipality's journey towards financial sustainability and responsible governance, emphasizing the city's commitment to meeting its financial obligations and preventing future disruptions to electricity supply.