Major Debt Milestone: City of Johannesburg settles R5.25 billion electricity bill

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The City of Johannesburg has settled its outstanding R5.25 billion electricity debt to Eskom.

The Department of Electricity and Energy and the City of Johannesburg announced on Friday that Eskom had received the final payment, settling accumulated overdue debt of R5 255 421 994.16 owed by the city and City Power.

The settlement follows an intervention and mediation process established by Electricity and Energy Minister Kgosientsho Ramokgopa, which brought together the city, City Power and Eskom to resolve long-running billing disputes.

The dispute had previously raised concerns over the potential impact on electricity supply in Johannesburg.

Following confirmation of the payment, Eskom withdrew a Promotion of Administrative Justice Act (PAJA) process initiated on 17 May 2026 to address the outstanding arrears.

MEDIA STATEMENT

CITY OF JOHANNESBURG SETTLES IN FULL R5.25 BILLION OVERDUE ELECTRICITY DEBT TO ESKOM

The Minister of Electricity and Energy, Dr. Kgosientsho Ramokgopa, and the Executive Mayor of the City of Johannesburg, Councillor Dada Morero, are pleased to announce the… pic.twitter.com/Sw1P4IAn2G

— Department of Electricity and Energy (@DOEE_ZA) August 21, 2026

Ramokgopa said the resolution demonstrated the effectiveness of the intergovernmental relations model used to resolve the dispute.

“We are pleased to see this matter reach a definitive conclusion,” Ramokgopa said, adding that the process had helped ensure residents and businesses continued to receive an uninterrupted power supply while protecting Eskom’s financial sustainability.

Johannesburg Executive Mayor Dada Morero described the settlement as a significant milestone in the city’s efforts to improve financial sustainability and responsible governance.

Debt payment to prevent disruptions

Morero said settling the debt demonstrated the city’s commitment to meeting its obligations while protecting residents and businesses from electricity disruptions.

The city has also committed to keeping future electricity accounts up to date, reducing electricity losses caused by theft and vandalism, and investing in critical infrastructure.

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Eskom and City Power will continue working together on infrastructure maintenance, reducing electricity losses and implementing data-sharing protocols aimed at supporting the long-term security of electricity supply.

The two entities said their continued cooperation was intended to support reliable electricity supply in Johannesburg, South Africa’s economic and financial hub. 

Article sourced: SAgovNews