Outa warns of potential court showdown to stop Eskom cutting Joburg’s power

The Organisation Undoing Tax Abuse (Outa) is preparing urgent legal action to prevent Eskom from switching off electricity to the City of Johannesburg over billions in unpaid debt.

Outa CEO Wayne Duvenage says the organisation is ready to go to court to interdict Eskom from cutting power or to compel the regulator to ring-fence electricity payments so they are paid directly to Eskom.

Read:

Johannesburg adds 700 managers as city struggles to pay bills
City of Joburg secures R3.8bn loan to fix its electricity woes

“If Eskom wants to cut off the power, we will interdict that. OUTA is prepared to go to court to compel the National Energy Regulator of SA (Nersa) to get a court order that removes the funds from the City of Joburg and pays it directly to Eskom,” says Duvenage.

Debt dispute escalates

The City of Joburg and City Power owe Eskom about R5.3 billion in arrears.

This includes an overdue current account of R2.7 billion and the balance from a previous court-ordered settlement.

“Joburg reneged on previous arrangements to settle debt with Eskom, so Eskom is saying we have to start switching off electricity on a type of rolling blackout basis,” says Duvenage.

“Before they can do that, there must be public engagement. We don’t want to get in the way of Eskom resolving the issue, because the party at fault here is the City of Joburg.”

He adds: “We will fight for Eskom to ensure that the electricity payments are ring-fenced and paid over to them, so we are adopting a two-pronged approach: [to] interdict Eskom from cutting power to Joburg, and at the same time ensuring Eskom receives the money it is owed.”

ADVERTISEMENT

CONTINUE READING BELOW

This could require compelling Nersa to obtain a court order directing that the funds be removed from the City of Joburg and paid directly to Eskom.

Eskom says Joburg and City Power continue to make some payments towards their overdue electricity account in terms of a payment arrangement that was made an order of court in November 2025, but have failed to meet their obligations under the agreement.

Eskom revives power cut process

As a result, Eskom says it will now proceed with a Promotion of Administrative Justice Act (Paja) notice to suspend power supply to certain bulk supply points in Joburg due to the city’s non-payment.

The notice was first issued in November 2024 in response to the city’s “persistent non-compliance with its financial obligations”.

Listen/read:

Mr Mayor, in what city do you live?

Joburg not absolved from its obligations to pay Eskom – Ramokgopa

Eskom suspended the Paja process following the intervention of Minister of Electricity and Energy Kgosientsho Ramokgopa, who announced that Eskom and City Power had reached an agreement in principle. The suspension required City Power to settle its account with Eskom.

Eskom says the Paja process will continue, with public comments being accepted until 17 July. This means City Power has failed to meet its payment obligations under the agreement, and Eskom will now proceed with the Paja process.

Outa’s planned court action highlights the urgency of consequence management and the need for direct intervention to safeguard energy supply.

ADVERTISEMENT:

CONTINUE READING BELOW

The crisis also points to systemic failures in governance and accountability, according to the Motor Industry Staff Association (Misa).

“Workers and their families cannot be collateral damage in disputes between Eskom and municipalities. Cutting off power to Johannesburg would be catastrophic for jobs, businesses, and households.

“MISA calls for urgent transparency and accountability in municipal finances, and for decisive action to protect the livelihoods of ordinary South Africans,” says Martlé Keyter, Misa CEO for operations.

Businesses and residents caught in the middle

Misa says the looming threat of power cuts in Joburg has profound implications.

Johannesburg is South Africa’s economic hub. If Eskom cuts supply, households will be plunged into darkness, businesses will grind to a halt, and jobs will be lost.

The ripple effects could devastate Gauteng’s economy and undermine national stability.

“While residents and businesses continue to pay for electricity, allegations persist that funds are not reaching Eskom. Outa’s planned court action highlights the urgency of consequence management and the need for direct intervention to safeguard energy supply,” says Misa in a statement.

Read:

Pothole, signal repairs halted as CoJ liquidity concerns mount
Solving Johannesburg’s debt crisis is critical for both Eskom and CoJ

#Outa #warns #potential #court #showdown #stop #Eskom #cutting #Joburgs #power