Eskom warns Joburg of power cuts over R5.2bn unpaid debt what residents and businesses must know

Short warning: Eskom may cut supply to Joburg bulk points over unpaid municipal debt

Eskom has issued a notice of its intention to reduce, interrupt or terminate electricity supply to certain bulk points serving the City of Johannesburg and City Power after the metro accumulated substantial arrears.

What Eskom says

The utility told the City of Johannesburg and City Power it currently owes Eskom R5 255 421 994.16, excluding a further R1 582 093 993.32 shown on the current account due on 5 June 2026. Eskom described the situation as the city and City Power’s “complete failure” to honour its electricity supply agreement, citing repeated defaults.

“As a result of CoJ/CP’s continued failure to honour its Electricity Supply Agreement with Eskom, including repeated defaults, Eskom has been forced to issue a notice of its intention to reduce, interrupt and/or terminate the supply of electricity to certain bulk supply points against the City of Johannesburg and City Power.”

Why Eskom says it’s taking action

Eskom said the accumulation of municipal and metro arrear debt undermines its efforts to be cost-efficient and threatens its financial sustainability. The utility stated that it “simply cannot be acceptable” that municipalities collect electricity revenue but fail to pay Eskom its share.

“Eskom’s financial sustainability and ability to supply electricity at affordable prices are dependent upon its ability to improve its balance sheet by increasing revenue and reducing expenses. Revenue can only be increased by collecting electricity debts and/or increasing electricity tariffs.”

Broader municipal debt context

The City of Johannesburg and City Power’s arrears form part of a wider municipal debt problem. According to a presentation by Eskom’s Acting Group Executive for Distribution, municipal debt rose from R20 billion in 2019 to R105 billion in September 2025, accounting for most of Eskom’s R108 billion in outstanding arrears.

What Eskom is proposing as a solution

Eskom said it has been working with municipalities to develop sustainable debt solutions and has rolled out a Distribution Agency Agreement (DAA) under its Active Partnering initiative. The utility described the DAA as a long-term, non-permanent contract that offers services to restore the sustainability of electricity provision in a municipality or metro.

• Services mentioned include skill development and training
• Replacement or installation of smart meters
• Eskom collecting revenue on behalf of the municipality

“This agreement offers a suite of services and solutions aimed at restoring the sustainability of electricity provision in a municipality or metro by enhancing its technical and financial sustainability.”

Eskom said it is working nationwide to assist in the rollout and that nine municipalities had received council resolutions to sign DAAs following consultations.

Immediate implications for residents and businesses

The notice signals a real risk that supply could be reduced, interrupted or terminated at certain bulk supply points serving the city. Eskom has framed the measure as a response to repeated defaults rather than a routine load-shedding announcement.

What to expect next

The Citizen report notes that comments from the City of Johannesburg and City Power were to be included once received. Eskom said it has been engaging with the metro for over two years to support payment obligations, and it continues to promote DAAs and other interventions as potential remedies.

Key facts to remember

• R5 255 421 994.16 arrears currently owed by the City of Johannesburg and City Power to Eskom
• R1 582 093 993.32 additional amount shown on the current account due on 5 June 2026
• Eskom has warned it may reduce, interrupt or terminate supply to certain bulk points serving Joburg

Joburg residents and businesses should follow official updates from Eskom, the City of Johannesburg and City Power for notices about specific bulk points and any planned interruptions.