Joburg settles over R5bn Eskom electricity debt

City of Joburg (CoJ) has settled its electricity debt, paying over to Eskom just more than R5.25 billion in overdue bills.

The settlement comes amid an intervention and mediation process established by the Ministry of Electricity and Energy, which brought together leadership from the municipality, City Power, and Eskom to resolve the long-standing billing disputes that previously threatened the security of supply.

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Following the full settlement, Eskom has officially withdrawn the Promotion of Administrative Justice Act (Paja) process, which was initiated on 17 May 2026 to address the arrears.

In May, Eskom warned it may cut power to certain bulk supply points in the metro due to the city’s ballooning debt and defaults on payment agreements.

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Without the payment made this week, the city’s residents and businesses would have potentially been hit with power cuts.

Read: Eskom warns of power cuts to ‘defaulting’ City of Johannesburg

Eskom and CoJ released a joint statement confirmed the transfer of funds on Friday.

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

“This resolution reinforces the effectiveness of the inter-governmental relations model we have championed. By maintaining an open dialogue and a structured task team, we have ensured that the residents and businesses of Johannesburg continue to receive an uninterrupted power supply while safeguarding the financial sustainability of our national utility.”

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The balance of the city’s current account sits at R1.8 billion, due 31 August 2026.

“This is a significant milestone in the city’s journey towards financial sustainability and responsible governance,” Joburg Mayor Dada Morero said, vowing to keep the current account up to date.

The city remains under tremendous pressure to prove it can recover from a governance and financial crisis that has been years in the making.

This is despite reassurances by the city’s officials that it’s not at breaking point.

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