Eskom threatens Joburg power cuts over R5.2 billion debt
· Citizen
Eskom has warned that the City of Johannesburg’s R5.2 billion arrears and repeated defaults could cause the lights to go out at key bulk supply points.
The utility has issued a notice of its intention to reduce, interrupt, or terminate electricity supply to certain bulk points serving the City of Johannesburg and City Power due to its massive arrears.
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‘Complete failure’
Eskom described the arrears as the city and City Power’s “complete failure” to honour its electricity supply agreement with Eskom, including repeated defaults.
The utility announced on Tuesday that the City of Johannesburg and City Power currently owe Eskom R5 255 421 994.16, excluding a further R1 582 093 993.32 due on the current account on 5 June 2026.
‘Repeated faults’
Eskom said it has been working with the city and City Power for over two years to support the metro in meeting its payment obligations.
“As a result of CoJ/CP’s continued failure to honour its Electricity Supply Agreement with Eskom, including repeated defaults, Eskom has been forced to issue a notice of its intention to reduce, interrupt and/or terminate the supply of electricity to certain bulk supply points against the City of Johannesburg and City Power.”
‘Failing to pay Eskom’
Eskom maintains that it “simply cannot be acceptable” to the City’s residents and all South Africans that the City and City Power are collecting electricity revenue but failing to pay Eskom its share.
The utility said while it continues to focus on being cost-efficient, escalating municipal and metro arrear debt undermines these efforts.
“Eskom’s financial sustainability and ability to supply electricity at affordable prices are dependent upon its ability to improve its balance sheet by increasing revenue and reducing expenses. Revenue can only be increased by collecting electricity debts and/or increasing electricity tariffs.”
Municipal debt
The City of Johannesburg and City Power’s arrears debt crisis is part of a larger problem affecting Eskom’s financial recovery.
Last year, Eskom warned that ballooning municipal debt and ongoing load reduction measures could undo the progress made under the national debt relief programme, undermining both electricity stability and economic recovery.
According to Eskom Acting Group Executive for Distribution Agnes Mlambo’s presentation to the parliament’s portfolio committee on electricity and energy, municipal debt has skyrocketed from R20 billion in 2019 to a staggering R105 billion in September 2025.
This accounted for the bulk of Eskom’s R108 billion in outstanding arrears.
Debt solutions
However, Eskom said many municipalities and metros across the country are working with it to develop sustainable debt solutions, as it continues to accelerate its support for this approach.
Eskom announced on 5 May that nine municipalities have received council resolutions to sign the Distribution Agency Agreements following consultation processes.
Agreement
The utility said it developed a Distribution Agency Agreement (DAA), which is a long-term, non-permanent contract between a municipality or metro and Eskom, as part of the Active Partnering initiative.
“This agreement offers a suite of services and solutions aimed at restoring the sustainability of electricity provision in a municipality or metro by enhancing its technical and financial sustainability.
“The services include skill development and training, replacement or installation of smart meters, as well as Eskom collecting revenue on behalf of the municipality. Eskom is working nationwide to assist in the rollout of this initiative,” the utility said.
Comments from the City of Johannesburg and City Power will be included in the story once received.