Surprise Move: City of Johannesburg Resolves R5.5 Billion Outstanding Debt with Eskom
Johannesburg – In a surprising development, the City of Johannesburg has fully settled its overdue electricity debt of R5.5 billion to Eskom.
The City had been grappling with the settlement of its outstanding arrears to the power utility and was recently at risk of facing power supply interruptions.
Nonetheless, in a joint announcement on Friday, 21 August 2026, Electricity and Energy Minister Dr. Kgosientsho Ramokgopa and Johannesburg Mayor Dada Morero revealed that the debt to the power utility has been settled.
They expressed their satisfaction in declaring the complete resolution of the R5.25 billion overdue electricity debt owed by City of Johannesburg/City Power (CoJ/CP) to Eskom.
This achievement follows the intervention and mediation efforts by the Ministry of Electricity and Energy, which facilitated discussions among the leadership of the City, City Power, and Eskom to address persistent billing disputes that had threatened supply security.
“Today, Eskom confirmed receipt of the final payment, settling the total overdue debt of R5,255,421,994.16,” stated the joint announcement.
“Additionally, the City of Johannesburg is steadfast in its commitment to ensuring that all future payments are made on or before their respective due dates, promoting fiscal responsibility and dependable service delivery.”
In light of this complete settlement, Eskom has officially rescinded the Promotion of Administrative Justice Act (PAJA) process initiated on 17 May 2026 to address the outstanding debts.
Electricity and Energy Minister Dr. Ramokgopa remarked: “We are pleased to have brought this matter to a conclusive end. This outcome highlights the success of the Inter-Governmental Relations (IGR) framework we support.
“By fostering open communication and forming a structured task team, we have ensured that the residents and businesses of Johannesburg continue to enjoy uninterrupted power supplies while also safeguarding the financial viability of our national utility.”
Mayor Morero added: “This marks a pivotal achievement in the City’s pursuit of financial sustainability and accountable governance.
“The settlement of the R5.25 billion overdue debt signifies our dedication to fulfilling our responsibilities and protecting the residents and businesses of Johannesburg from electricity supply disruptions.
“We are committed to making timely payments, minimizing electricity losses due to theft and vandalism, investing in essential electrical infrastructure, and collaborating closely with Eskom to create a more dependable and sustainable energy future for our city.”
The joint statement also noted that both Eskom and City Power are dedicated to ongoing collaboration, with a focus on infrastructure maintenance, reducing electricity losses caused by theft and vandalism, and continuing the implementation of data-sharing protocols to ensure uninterrupted electricity supply for South Africa’s economic and financial center.
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