Eskom and the City of Johannesburg met on May 20 to negotiate a settlement for the city's outstanding electricity debt.
The agreement is critical to prevent widespread power outages in South Africa's largest city, which would disrupt businesses and essential services.
Johannesburg currently owes Eskom approximately R5.2 billion [1]. This financial shortfall prompted the national power utility to issue a formal notice regarding potential supply interruptions. Eskom said it may begin cutting power to parts of the city starting July 8, 2026 [2], if a viable payment arrangement is not reached.
Mayor Dada Morero led the city's delegation during the meeting to broker a deal that would keep the lights on. The negotiations focused on creating a sustainable repayment plan to address the R5.2 billion [1] balance. The city is seeking to avoid the fallout associated with targeted outages, which the national energy minister previously warned could be severe.
Eskom said the recovery of these funds is necessary for its own operational stability. The utility has used the threat of cuts as leverage to ensure that municipalities prioritize their electricity payments. The two parties are working to finalize the terms of the agreement to ensure the city remains compliant with its financial obligations before the July deadline [2].
City officials have not yet released the specific terms of the repayment schedule. However, the meeting on May 20 served as a primary step in averting the July 8 [2] deadline for power cuts. The resolution of this debt remains a priority for the local administration to ensure stability for residents, and commercial sectors throughout Johannesburg.
“Johannesburg currently owes Eskom approximately R5.2 billion.”
The tension between Eskom and the City of Johannesburg highlights a systemic struggle within South Africa's energy sector, where municipal debt hampers the national utility's ability to maintain infrastructure. If the city fails to meet the terms of this new agreement, the resulting power cuts could trigger a localized economic downturn and increase pressure on the city's administration to reform its revenue collection processes.
