Eskom has issued a formal notice of its intention to reduce, interrupt or terminate electricity supply to several bulk supply points serving the City of Johannesburg, after arrear debt owed by the metro and its distributor, City Power, climbed past R5.2-billion.
In a media statement on Tuesday evening, the utility said the City of Johannesburg and City Power owed it R5.26-billion in arrears on top of a current account of a further R1.58-billion due on 5 June. Eskom said it had worked with the city for more than two years to help it meet its payment obligations.
The planned interruptions would take effect from 8 July unless the debt is resolved, and would follow a consultation process under the Promotion of Administrative Justice Act. Eskom’s notice identifies four substations as the affected supply points: Fordsburg, which feeds the Johannesburg CBD, Auckland Park and Mayfair; Beyers, supplying Fairlands and Cresta; Crowthorne; and Allandale, which serves Midrand.
Eskom said the city has failed to honour a repayment settlement that was made an order of the high court in November 2025, defaulting on both its historical debt instalments and its current account despite that order – something the utility says has placed “enormous strain” on its cash flow.
Eskom said it was unacceptable that the city was “collecting electricity revenue but failing to pay over Eskom’s share”, arguing that escalating municipal arrears undermine its financial sustainability and ability to keep electricity affordable.
The standoff closely resembles one in November 2024, when Eskom issued a near-identical notice over R4.9-billion in arrears.
Distribution agreement
That dispute was defused after electricity minister Kgosientsho Ramokgopa intervened, City Power agreed to make a payment and an independent expert was appointed to investigate the city’s claims that Eskom had overbilled it by about R3.4-billion.
City Power has previously disputed Eskom’s metering and billing.
Eskom also used the statement to promote its “distribution agency agreement”, a long-term contract under which it takes over functions such as revenue collection, smart-meter installation and training in distressed municipalities.
Read: City Power to roll out EV charging stations in Joburg
It said nine municipalities had received council resolutions to sign such agreements. The model is central to Eskom’s response to municipal debt that it says exceeds R110-billion nationally, though the arrangement has drawn objections and a legal challenge. – © 2026 NewsCentral Media
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