JOHANNESBURG — The City of Johannesburg has officially settled its R5.25 billion electricity debt to Eskom, resolving a long-standing financial dispute and securing an uninterrupted power supply for South Africa’s primary economic hub.
The Department of Electricity and Energy and the City of Johannesburg confirmed on Friday that Eskom received the final payment, clearing the accumulated overdue debt of exactly R5,255,421,994.16 owed jointly by the municipality and City Power.
This financial resolution follows a targeted intervention and mediation process led by Electricity and Energy Minister Kgosientsho Ramokgopa. The mediation successfully brought together municipal leadership, City Power, and Eskom to resolve protracted billing disputes that had previously raised concerns regarding the stability of electricity supply in the metropolitan area.
In the wake of the confirmed payment, Eskom has formally withdrawn a Promotion of Administrative Justice Act (PAJA) process that was initiated on 17 May 2026 to address the outstanding municipal arrears.
Electricity and Energy Minister Kgosientsho Ramokgopa highlighted that the resolution underscores the effectiveness of the inter-governmental relations model utilized to navigate the dispute. “We are pleased to see this matter reach a definitive conclusion,” Ramokgopa stated, noting that the process successfully ensured residents and businesses continued to receive reliable power while simultaneously protecting Eskom’s financial sustainability.
Johannesburg Executive Mayor Dada Morero characterized the debt settlement as a significant milestone in the city’s broader efforts to enhance financial sustainability and responsible governance. Morero emphasized that clearing the debt demonstrates the city’s commitment to meeting its financial obligations while shielding residents and local businesses from potential electricity disruptions.
Moving forward, the city has formally committed to maintaining up-to-date electricity accounts, actively reducing electricity losses attributed to theft and vandalism, and directing investments toward critical infrastructure upgrades.
Furthermore, Eskom and City Power will maintain collaborative efforts focused on infrastructure maintenance, loss reduction, and the implementation of robust data-sharing protocols. Both entities affirmed that this continued cooperation is designed to support a reliable, long-term electricity supply in Johannesburg, South Africa’s premier economic and financial center.