Johannesburg pays Eskom R5.255bn, ending long-running billing dispute

The City of Johannesburg has paid R5 255 421 994.16 to Eskom, settling the accumulated overdue amount owed by the city and City Power and bringing a long-running billing dispute to an end.

Final payment confirmed after minister-led mediation

Eskom confirmed receipt of the final payment following an intervention and mediation process established by Electricity and Energy Minister Kgosientsho Ramokgopa. The mediation brought the City of Johannesburg, City Power and Eskom together to resolve the dispute.

Legal process withdrawn

After confirmation of the payment, Eskom withdrew a Promotion of Administrative Justice Act (PAJA) process it had initiated on 17 May 2026 regarding the arrears. The withdrawal marked a significant step towards closing the dispute between the parties.

Officials welcome the resolution

“We are pleased to see this matter reach a definitive conclusion,”

Minister Ramokgopa said, welcoming the settlement and saying the mediation had helped protect electricity supply and Eskom’s financial sustainability.

Johannesburg Executive Mayor Dada Morero described the settlement as an important milestone in the city’s efforts to improve financial sustainability and strengthen governance. Morero said the payment showed the city’s commitment to meeting its financial obligations and protecting residents and businesses from possible electricity disruptions.

City undertakes measures to prevent recurrence

The city has committed to keeping future electricity accounts up to date. It also pledged to reduce electricity losses from theft and vandalism and to invest in critical electricity infrastructure to help maintain reliable services.

Why the settlement matters

• The payment of R5 255 421 994.16 settles the accumulated overdue amount owed by the City of Johannesburg and City Power to Eskom.
• The mediation and the withdrawal of the PAJA process aim to remove the legal and operational tensions between the parties.
• City commitments target account management, loss reduction and infrastructure investment to prevent a repeat of the dispute.

The settlement ends a dispute that had raised concerns about the potential impact on Johannesburg’s power supply and the relationship between the city and the national utility.