By Mapaballo Borotho
- Eskom and the City of Johannesburg have reached a renewed payment agreement after threats of electricity interruptions over billions owed to the power utility.
- Electricity Minister Kgosientsho Ramokgopa said the agreement aims to resolve the city’s debt and improve payment compliance.
- More details about the repayment plan are expected during Johannesburg’s upcoming Budget Speech.
Eskom and the City of Johannesburg have reached a renewed payment agreement following threats of electricity supply interruptions over outstanding debt.
Electricity Minister Kgosientsho Ramokgopa announced the renewed partnership aimed at addressing arrear debt worth more than R5 billion.
The development follows a meeting between the city and the embattled power utility.
Last week, Eskom issued a notice of its intention to interrupt or cut electricity supply to certain utilities supplying the City of Johannesburg.
On Tuesday, 19 May 2026, Eskom announced that the City of Johannesburg and City Power owed the utility more than R5 billion, excluding a current account of over R1 billion due next month.
The planned electricity interruptions were expected to take effect from 8 July 2026 unless the debt dispute was resolved.
Last year, the city and Eskom signed a long-term payment arrangement aimed at assisting financially distressed municipalities. However, City Power reportedly defaulted on payments this year, with Johannesburg Mayor Dada Morero attributing the issue to payment disputes and poor revenue collection by the city.
During Tuesday’s meeting, City Power and Eskom appeared to reaffirm the agreement and recommit to finding a solution.
Ramokgopa said another major aspect of the agreement would involve ring-fencing funding to ensure financial stability and payment compliance.
Officials are still expected to determine a timeline for when the debt will be fully settled, although more details could emerge during the City’s Budget Speech on Wednesday.
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