Eskom to cut power to Johannesburg and City Power over R5.2 billion debt
JOHANNESBURG, GAUTENG—Eskom has issued a formal notice of its intention to reduce or cut electricity supply to bulk supply points in Johannesburg, as the metro’s arrears debt hits R5.2 billion.
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According to a statement Eskom shared on 19 May 2026 on its Facebook account, the City of Johannesburg and City Power currently owe the power utility an exact arrear amount of R5,255,421,994.16. This multi-billion rand debt does not include the metro's current account of over R1.58 billion, which Eskom noted is due for payment on 5 June 2026. The power utility added that it has been working with the metro for more than two years to help it meet its payment obligations.
Eskom, which recently increased the minimum wage for its employees, said the metro’s repeated defaults and failure to honour its Electricity Supply Agreement forced its hand. The state-owned power utility argued that it is unacceptable for City Power to collect electricity revenue from Johannesburg residents while failing to pay Eskom its share.
According to the statement, escalating municipal debt heavily undermines Eskom's efforts to remain cost-efficient and financially sustainable. Eskom maintained that its ability to supply affordable electricity depends entirely on improving its balance sheet by reducing expenses and collecting outstanding revenue.
To help municipalities deliver electricity sustainably, Eskom said it has developed a Distribution Agency Agreement (DAA). The power utility described the agreement as a long-term, temporary contract designed to restore technical and financial stability in metros. The intervention includes skills development, smart meter installations, and the authorisation for Eskom to collect revenue directly on behalf of the municipality.
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Eskom added that it is rolling out this initiative nationwide, revealing that nine municipalities have already resolved to sign the agreements following consultation processes.
Source: Briefly News
