JOHANNESBURG, Gauteng – Johannesburg residents can expect continued electricity service following a high-level agreement between the city, Eskom, and national government, Executive Mayor Dada Morero has confirmed.
The assurance comes after the city’s outstanding debt to the power utility surpassed R5.2 billion, prompting Eskom to consider discontinuing supply. Emergency negotiations involving Mayor Morero and Electricity Minister Kgosientsho Ramokgopa produced a framework focused on both debt resolution and systemic reform at City Power.
“The debt remains acknowledged and will be paid,” Morero explained. “However, our priority shifted toward building a functional partnership to address the operational challenges driving these financial pressures.”
Payment Structure and Immediate Stability
Under the agreement, technical administrators from both the city and Eskom will develop structured payment schedules for the outstanding balance. Meanwhile, Johannesburg will maintain full payments on its current monthly electricity accounts to prevent further arrears accumulation.
The city defaulted on obligations during January and February, which Morero attributed to a temporary decline in revenue collection. He reported that collection rates have since recovered to approximately 90% during March and April, improving the municipality’s capacity to meet both historical and ongoing financial commitments. Morero noted that earlier notification to Eskom regarding collection shortfalls might have mitigated the crisis.
Tackling Revenue Losses and Infrastructure Challenges
A central component of the plan targets the reduction of electricity losses, currently estimated at 29%. These include both technical losses from aging infrastructure and non-technical losses from illegal connections and meter tampering.
“We are launching an aggressive campaign to identify and disconnect illegal users, particularly in the inner city and specific residential estates where meter bypassing is prevalent,” Morero stated. “Simultaneously, we must invest in infrastructure to reduce technical losses.”
The city is also reviewing its indigent support framework and electricity tariff structures in consultation with Eskom to ensure sustainable service delivery for vulnerable households.
Broader Financial Strategy
Beyond the Eskom agreement, Morero outlined wider fiscal measures. He acknowledged competing financial pressures, including obligations related to labor agreements, and emphasized a dual strategy: enhancing revenue collection and enforcing stricter expenditure controls.
“Some departments have been spending beyond their allocations,” he admitted. “The budget we are finalizing will align expenditure with realistic revenue projections.”
The city has engaged the National Treasury on these challenges. According to Morero, the Minister of Finance has acknowledged progress toward fiscal stabilization and pledged targeted capacity support where gaps exist.
Governance and Leadership Accountability
Clarifying municipal governance roles, Morero explained that the administrative arm—led by the City Manager, CFO, and COO—executes operational and financial decisions, while political leadership provides strategic oversight through the mayoral committee and council.
Morero expressed confidence in the current administrative leadership team but stressed heightened expectations. “They have committed to turning the city’s trajectory around. We expect them to act decisively, communicate challenges transparently, and deliver results without delay.”
Next Steps and Public Communication
Technical working groups from City Power and Eskom will develop actionable proposals on loss reduction, infrastructure investment, and tariff frameworks. Progress reports will inform future public briefings by Mayor Morero and Minister Ramokgopa.
For now, the Mayor’s message to residents and businesses remains clear: under the current agreement, electricity supply in Johannesburg will not be interrupted due to the municipal debt to Eskom.