City of Johannesburg settles R5.25 billion Eskom debt

The City of Johannesburg and City Power have fully settled their outstanding electricity debt of more than R5.25 billion owed to Eskom.

Electricity and Energy Minister Kgosientsho Ramokgopa and Johannesburg Executive Mayor Dada Morero on Friday announced the developments.

Eskom confirmed receipt of the final payment, bringing the total accumulated overdue debt to R5,255,421,994.16.

The settlement follows an intervention and mediation process led by the Department of Electricity and Energy to resolve long-standing billing disputes between Eskom, the City and City Power.

The dispute had raised concerns about the security of electricity supply to Johannesburg, South Africa's economic and financial hub.

Following the full settlement, Eskom has withdrawn the Promotion of Administrative Justice Act (PAJA) process that was initiated on 17 May 2026 over the outstanding arrears.

Ramokgopa welcomed the resolution, saying it demonstrated the effectiveness of cooperation between different spheres of government.

“We are pleased to see this matter reach a definitive conclusion,” Ramokgopa said.

He said maintaining an open dialogue and a structured task team had helped ensure that residents and businesses continued receiving an uninterrupted electricity supply while protecting Eskom's financial sustainability.

Morero described the settlement as a significant milestone for Johannesburg's financial sustainability and responsible governance.

He said settling the debt demonstrated the City's commitment to meeting its financial obligations while protecting residents and businesses from possible electricity supply disruptions.

The City has also committed to ensuring that future Eskom accounts are paid on or before their respective due dates.

Morero said the City would continue working to reduce electricity losses caused by theft and vandalism, invest in critical electricity infrastructure and maintain cooperation with Eskom.

Eskom and City Power will also continue working together on infrastructure maintenance and measures to reduce electricity losses.

The two entities will further implement data-sharing protocols aimed at strengthening the reliability of the electricity network and ensuring long-term security of supply.

The settlement marks a significant development in the relationship between Eskom and the City of Johannesburg, with both parties now focusing on improving infrastructure, financial discipline and the reliability of electricity supply to the city's residents and businesses.