Major electricity dispute between City of Johannesburg and Eskom finally ends
· The South African
The City of Johannesburg has settled its massive outstanding electricity debt to Eskom, bringing an end to a dispute that had raised concerns about the potential impact on the city’s power supply.
Eskom confirmed receipt of the final payment of R5 255 421 994.16, settling the accumulated overdue amount owed by the City of Johannesburg and City Power.
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The settlement follows an intervention and mediation process established by Electricity and Energy Minister Kgosientsho Ramokgopa, which brought the city, City Power and Eskom together to resolve the long-running billing dispute.
The dispute had become a significant concern for Johannesburg, with the prospect of unresolved electricity debt putting pressure on relations between the city and the power utility and raising questions about the security of electricity supply.
Eskom withdraws legal process
Following confirmation that the outstanding amount had been paid, Eskom withdrew a Promotion of Administrative Justice Act (PAJA) process it had initiated on 17 May 2026 regarding the arrears.
The withdrawal marks a significant step towards closing a dispute that had persisted between the parties.
Ramokgopa welcomed the resolution, saying it demonstrated the effectiveness of intergovernmental cooperation in addressing complex disputes.
“We are pleased to see this matter reach a definitive conclusion,” Ramokgopa said.
He said the mediation process had helped ensure that residents and businesses continued to receive an uninterrupted electricity supply while also protecting Eskom’s financial sustainability.
City commits to keeping accounts up to date
Johannesburg Executive Mayor Dada Morero described the settlement as an important milestone in the city’s efforts to improve its financial sustainability and strengthen responsible governance.
Morero said paying the debt demonstrated the city’s commitment to meeting its financial obligations while protecting residents and businesses from the possibility of electricity disruptions.
But the settlement also comes with commitments aimed at preventing a repeat of the situation.
The city has undertaken to keep future electricity accounts up to date, while also reducing electricity losses caused by theft and vandalism and investing in critical electricity infrastructure.
These issues remain important challenges for the city, particularly as Johannesburg seeks to maintain reliable electricity services while managing pressure on municipal finances and infrastructure.