The City of Johannesburg has settled its outstanding R5.25 billion electricity debt to Eskom.
Eskom received the final payment from the city and City Power, settling accumulated overdue debt of R5 255 421 994.16.
The payment ends a long-running billing dispute which raised concerns about possible electricity supply disruptions in Johannesburg. Eskom confirmed the full settlement.
Key settlement details
| Detail | Information |
|---|---|
| Total debt settled | R5 255 421 994.16 |
| Parties involved | City of Johannesburg, City Power and Eskom |
| PAJA process started | 17 May 2026 |
| PAJA process status | Withdrawn |
| Final payment status | Paid in full |
Mediation resolves billing dispute
Electricity and Energy Minister Kgosientsho Ramokgopa established an intervention and mediation process to resolve the dispute.
The process brought together the City of Johannesburg, City Power and Eskom.
Ramokgopa said the resolution showed the value of the inter-governmental relations model used during the negotiations.
“We are pleased to see this matter reach a definitive conclusion,” Ramokgopa said.
He said the process protected Eskom’s financial sustainability while ensuring residents and businesses continued receiving an uninterrupted electricity supply.
Eskom withdraws PAJA process
Eskom started a Promotion of Administrative Justice Act process on 17 May 2026 to address the overdue account.
The power utility withdrew the PAJA process after receiving confirmation of the final payment.
Johannesburg commits to responsible financial management
Johannesburg Executive Mayor Dada Morero described the settlement as an important milestone in the city’s efforts to improve financial sustainability and responsible governance.
Morero said paying the debt showed the city’s commitment to meeting its financial obligations while protecting residents and businesses from electricity disruptions.
City Power and Eskom plan further cooperation
The city has committed to:
- Keeping future electricity accounts up to date
- Reducing electricity losses linked to theft and vandalism
- Investing in critical electricity infrastructure
Eskom and City Power will continue working together on infrastructure maintenance, electricity loss reduction and data-sharing protocols.
Their cooperation aims to support a reliable and secure electricity supply in Johannesburg.
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