Joburg’s Long-Overdue R5.25bn Eskom Debt Finally Settled
JOHANNESBURG – Johannesburg has settled more than R5.25 billion owed to Eskom, bringing an end to a long-running electricity billing dispute that had raised concerns about the financial relationship between the country’s biggest city and its national power utility and, at one stage, the potential consequences for electricity supply.
The Department of Electricity and Energy and the City of Johannesburg confirmed that Eskom received the final payment of the accumulated overdue debt on Friday. The total amount settled by the city and its electricity utility, City Power, was R5,255,421,994.16.
The payment follows an intervention led by Electricity and Energy Minister Kgosientsho Ramokgopa, who established a mediation process involving Eskom, the City of Johannesburg and City Power after disagreements over electricity billing developed into a substantial debt dispute.
The settlement has also resulted in Eskom withdrawing a process initiated under the Promotion of Administrative Justice Act (PAJA) on 17 May 2026 over the outstanding arrears, effectively removing one of the most serious escalation mechanisms surrounding the dispute.
Ramokgopa described the outcome as evidence that intergovernmental intervention could resolve disputes between state institutions without compromising electricity supply to residents and businesses. He said the process had allowed the parties to reach a definitive conclusion while protecting both Johannesburg’s electricity users and Eskom’s financial sustainability.
Johannesburg Executive Mayor Dada Morero similarly described the payment as an important step in strengthening the city’s financial position and demonstrating that the municipality was prepared to meet its obligations.
But paying the R5.25 billion closes only one part of Johannesburg’s electricity problem. The city must now prevent another large debt accumulation while confronting electricity theft, vandalism, infrastructure deterioration and technical and non-technical losses that continue to place pressure on the electricity distribution network.
As part of the settlement, Johannesburg has committed to keeping future electricity accounts current, investing in critical electricity infrastructure and reducing losses associated with theft and vandalism. Eskom and City Power are also expected to continue cooperating on infrastructure maintenance and data-sharing measures intended to improve the security and reliability of electricity supply.
The settlement is particularly significant because Johannesburg remains South Africa’s principal economic and financial centre. Prolonged uncertainty around the relationship between City Power and Eskom therefore carries consequences extending beyond municipal finances to businesses, investors and millions of electricity consumers dependent on the city’s distribution network.
For Johannesburg residents, the immediate R5.25 billion problem may have been settled. The bigger test will be whether the city can keep its Eskom account under control while fixing the infrastructure and revenue problems that contributed to the dispute in the first place.
Anyone with additional information relating to electricity billing, City Power infrastructure, electricity losses or power supply challenges in Johannesburg can contact TownPress at press@townpress.co.za.