Eskom has warned that it may interrupt electricity supply to parts of Johannesburg from July 8 after accusing the City of Johannesburg and City Power of failing to comply with a court-backed repayment agreement linked to an escalating debt now exceeding R5.2 billion.
The power utility said the city had defaulted on both historical debt repayments and the payment of its current electricity account, despite a settlement agreement that was formalised through an order of the Gauteng High Court in Johannesburg in November 2025.
In a formal notice issued to the City of Johannesburg (CoJ) and City Power, Eskom said it would proceed with a Promotion of Administrative Justice Act (PAJA) consultation process ahead of planned electricity supply interruptions to bulk supply points across the city unless the matter is resolved.
“The City of Johannesburg Metropolitan Municipality and/or City Power is currently indebted to Eskom in the amount of R5 255 421 994.16, excluding the current account due on 05 June 2026,” Eskom said in the notice.
Eskom said itself, the city and City Power had previously concluded a repayment settlement agreement regulating the payment of historical debt and current electricity accounts.
However, the utility accused the city of failing to comply with the terms of the agreement, despite the arrangement being made an order of court.
“Despite the existence of the aforementioned court order and the indulgence granted by Eskom through the repayment arrangement, CoJ/CP has failed to honour the terms of the court order,” Eskom said.
The utility warned that the growing debt burden was placing “enormous strain” on its cash flow and financial sustainability.
The latest development follows a similar notice issued by Eskom in November 2024, when the utility warned of possible electricity supply interruptions over billions of rand owed by the City of Johannesburg and City Power.
That process led to negotiations between Eskom, the city and City Power, culminating in a structured repayment agreement that was later formalised through a High Court order in 2025.
At the time, Eskom argued that Johannesburg’s arrears were contributing to the broader municipal debt crisis facing the utility nationally, while also accusing the city of withholding portions of its monthly payments over claims of overbilling.
Now, only months after the court-backed agreement was reached, Eskom said the city has once again fallen behind on both historical debt repayments and current electricity obligations.
ActionSA mayoral candidate Herman Mashaba said the renewed threat highlighted serious failures in Johannesburg’s financial management and governance.
“Residents and businesses who pay for services timeously continue to bear the brunt of incompetent and negligent leadership,” Mashaba said.
He warned that any electricity interruption would have devastating consequences for households, hospitals, schools, businesses and the broader economy.
“Johannesburg is a strategic and global economic mecca. Any interruption to electricity supply will have devastating consequences for households, hospitals, schools, small businesses, and the broader economy,” he said.
Mashaba added that the city risked undoing progress made after Eskom recently celebrated more than 365 days without load shedding.
“Yet, as the country celebrates progress in stabilising electricity supply, the City of Joburg risks plunging its own residents back into darkness because, simply because it has failed to pay its bills,” he said.
City Power spokesperson Isaac Mangena said the utility was aware of the outstanding debt issue, which had already been discussed with Eskom through the Intergovernmental Relations Forum.
“I know that we have been paying through the city’s finance department, and the areas should be reduced from where they were. The city is best positioned to respond to the said letter and alleged threats by Eskom,” he said.
The renewed debt dispute comes as City Power continues to battle widespread electricity losses, illegal connections and infrastructure vandalism across Johannesburg.
Last month, the utility uncovered large-scale electricity theft in Alexandra, where all 384 households on a single street were found to have tampered with or bypassed newly installed prepaid electricity meters.
City Power has repeatedly warned that illegal connections, meter tampering and non-payment are severely affecting revenue collection, damaging infrastructure and placing additional strain on the city’s electricity network.
Eskom said affected residents and stakeholders would be given until June 17 to make written submissions under the PAJA consultation process before a final decision is taken on whether electricity supply interruptions will proceed from July 8.
The Star
masabata.mkwananzi@inl.co.za