Johannesburg pays R5.25bn to Eskom, ending long-running billing dispute after minister-led mediation

View of South African utility Eskom's electricity pylons in Johannesburg. Image credit: Reuters/Siphiwe Sibeko/File Photo

According to SA News, the Department of Electricity and Energy and the City of Johannesburg announced that Eskom had received the final payment, settling accumulated overdue debt of R5.25bn owed by the city and City Power.

Intervention

The settlement follows an intervention and mediation process established by the Minister of Electricity and Energy, Kgosientsho Ramokgopa, which brought together the city, City Power and Eskom to resolve long-running billing disputes.

The dispute had previously raised concerns over the potential impact on electricity supply in Johannesburg.

After confirming payment, Eskom withdrew a Promotion of Administrative Justice Act (PAJA) process initiated on 17 May 2026 to address the outstanding debt.

Ramokgopa said the resolution showed the effectiveness of the inter-governmental relations model used to resolve the dispute.

“We are pleased to see this matter reach a definitive conclusion,” Ramokgopa said, adding that the process helped ensure residents and businesses continued to receive an uninterrupted power supply while protecting Eskom’s financial sustainability.

Undermining economic growth

Reuters reports that the move comes ahead of municipal elections on 4 November, when Johannesburg is expected to be among the most hotly contested battlegrounds.

Johannesburg Mayor Dada Morero said the settlement was a milestone in the city’s efforts to improve financial sustainability and responsible governance.

Reuters states that business leaders have pledged to help improve Johannesburg’s ailing finances and dilapidated infrastructure, saying the city’s condition risks undermining efforts to boost economic growth.

Morero said settling the debt showed the city’s commitment to meeting its obligations while protecting residents and businesses from electricity disruptions.

The city has also committed to keeping future electricity accounts up to date, reducing electricity losses caused by theft and vandalism, and investing in critical infrastructure.

Eskom and City Power will continue working together on infrastructure maintenance, reducing electricity losses and implementing data-sharing protocols aimed at supporting long-term security of electricity supply.

The two entities said their continued cooperation was intended to support reliable electricity supply in Johannesburg, South Africa’s economic and financial hub.