Johannesburg Pays R4.3bn Eskom Debt as Talks Extend

The City of Johannesburg has paid R4.3 billion towards its overdue electricity debt to Eskom, but still owes the power utility R3.8 billion as consultations continue over a potential electricity supply interruption.

Eskom initiated a process under South Africa's Promotion of Administrative Justice Act (PAJA) on 17 May 2026 after the city and City Power accumulated overdue electricity debt of R5.255 billion.

The utility has now extended the consultation process to 22 August 2026 to allow it to assess representations from residents and other affected stakeholders and monitor the city's compliance with its payment obligations.

As of 24 July, the city had paid R4.325 billion towards the debt. However, its overdue balance remained at R3.802 billion, comprising R1.223 billion on the current account and R2.579 billion outstanding under a settlement arrangement made an order of the High Court.

The city's current electricity account, worth R2.637 billion, is due for payment on 3 August.

City commits to further payments

The city has committed to paying a further R5.118 billion by 21 August, according to Eskom.

The extension gives Eskom additional time to determine whether the city's payment commitments and ongoing compliance with its electricity obligations are sufficient to resolve the debt dispute without disrupting electricity supply.

The development is significant because Johannesburg's electricity debt has become a major financial issue for Eskom, while any interruption to supply could have serious consequences for households, businesses and public services across South Africa's largest city. The consultation process seeks to balance Eskom's need to recover billions of rand in unpaid revenue with the potential wider impact of cutting power to the municipality.

Eskom acknowledged the payments made by the city but stressed that the overdue debt has not been fully settled. It also maintained that the consultation process does not amount to a waiver of any rights available to it under applicable agreements, court orders or legislation.

The utility indicated that the City of Johannesburg and City Power remain bound by the court-ordered settlement arrangement and must continue paying current electricity accounts by their respective due dates.

Eskom also reiterated its commitment to working with stakeholders towards a lasting resolution while protecting the financial sustainability of the electricity supply industry.

The next key dates are 3 August, when the city's current electricity account falls due, and 21 August, by which the municipality has committed to making R5.118 billion in payments. The extended PAJA process will run until 22 August, when Eskom's assessment of the representations and the city's payment performance will inform its next steps.