JOHANNESBURG — The City of Johannesburg has successfully cleared its R5.25 billion Eskom debt, resolving a critical financial standoff and guaranteeing stable power delivery for South Africa’s primary economic center. The settlement, confirmed on Friday by the Department of Electricity and Energy alongside municipal officials, wipes out the accumulated arrears of exactly R5,255,421,994.16 owed jointly by the municipality and City Power.
This financial breakthrough follows a structured mediation framework orchestrated by Electricity and Energy Minister Kgosientsho Ramokgopa. The inter-governmental intervention united municipal authorities, City Power, and the national utility to untangle protracted billing disagreements that had previously threatened the reliability of Johannesburg’s electricity grid.
With the funds now secured, Eskom has officially retracted a Promotion of Administrative Justice Act (PAJA) application. The legal measure was originally filed on 17 May 2026 as a mechanism to compel the recovery of the mounting municipal arrears.
Minister Ramokgopa praised the outcome as a validation of collaborative inter-governmental relations. “We are pleased to see this matter reach a definitive conclusion,” he stated, emphasizing that the mediated agreement successfully safeguarded Eskom’s financial health while guaranteeing uninterrupted electricity for local households and commercial enterprises.
Johannesburg Executive Mayor Dada Morero framed the payment as a pivotal achievement in the municipality’s drive toward fiscal responsibility and sound governance. According to Morero, honoring this debt underscores the city’s dedication to fulfilling its financial mandates without exposing residents and businesses to the risk of service interruptions.
To prevent a recurrence of such backlogs, the city has formally pledged to maintain current electricity accounts, aggressively combat revenue losses stemming from vandalism and power theft, and channel funding into essential grid infrastructure upgrades.
Moving forward, Eskom and City Power will sustain their joint operational focus on infrastructure upkeep, loss mitigation, and the rollout of advanced data-sharing protocols. Both organizations reiterated that this sustained partnership is vital to underpinning a secure, long-term electricity supply in Johannesburg, the cornerstone of South Africa’s financial and economic landscape.
