The City of Johannesburg has settled more than R5.25 billion in outstanding electricity debt owed to Eskom, removing a major financial dispute that had raised concerns about electricity supply to residents and businesses.
The Department of Electricity and Energy and the City confirmed that Eskom received the final payment, settling accumulated overdue debt of R5 255 421 994.16 owed by the City and City Power.
The settlement represents an important step towards strengthening the financial sustainability of Johannesburg’s electricity system while protecting reliable access to an essential service in South Africa’s largest economic hub.
The payment follows an intervention and mediation process established by Electricity and Energy Minister Kgosientsho Ramokgopa, bringing together the City of Johannesburg, City Power and Eskom to resolve longstanding billing disputes.
The dispute had previously raised concerns about its potential impact on electricity supply across Johannesburg.
Following confirmation that the outstanding amount had been paid, Eskom withdrew a Promotion of Administrative Justice Act (PAJA) process initiated on 17 May 2026 to address the arrears.
Ramokgopa said the resolution demonstrated the effectiveness of intergovernmental cooperation in resolving complex disputes involving essential public infrastructure.
“We are pleased to see this matter reach a definitive conclusion,” Ramokgopa said.
He said the process had helped ensure that residents and businesses continued receiving an uninterrupted electricity supply while also protecting Eskom’s financial sustainability.
Johannesburg Executive Mayor Dada Morero described the settlement as a significant milestone in the City’s efforts to strengthen responsible governance and its financial position.
According to Morero, settling the debt demonstrates Johannesburg’s commitment to meeting its financial obligations while protecting residents and businesses from electricity disruptions.
Importantly, the agreement extends beyond settling historical debt.
The City has committed to keeping future electricity accounts up to date, reducing electricity losses caused by theft and vandalism, and investing in critical electricity infrastructure.
Eskom and City Power will also continue working together on infrastructure maintenance, reducing electricity losses and introducing data-sharing protocols designed to strengthen the long-term security of Johannesburg’s electricity supply.
For Johannesburg’s residents and businesses, the resolution therefore carries significance beyond the R5.25 billion payment itself.
Resolving the financial dispute, maintaining current accounts and improving cooperation between Eskom and City Power can contribute towards a more sustainable electricity system and greater security around the essential infrastructure serving the city.
The continued cooperation between the two entities is intended to support reliable electricity supply across Johannesburg, protecting households, businesses and economic activity in South Africa’s economic and financial hub.
