Eskom Receives Full Payment of 5.26 Bln Rand Overdue Debt From Johannesburg

August 24, 2026
By Mintesinot Nigussie

South African power utility Eskom has received full payment of 5.26 billion rand in overdue electricity debt from the City of Johannesburg and its electricity utility, City Power, ending a dispute that had raised the prospect of supply interruptions to parts of the country’s economic hub.

Eskom said the City of Johannesburg and City Power had settled the accumulated debt of 5,255,421,994.16 rand in full.

The settlement has prompted Eskom to withdraw a legal and administrative process initiated in May that could have resulted in electricity supply being reduced, interrupted or terminated at certain bulk supply points.

The City of Johannesburg and City Power have also confirmed that they will pay their July 2026 electricity account of 1.86 billion rand by its August 31 due date and remain committed to settling future accounts on or before their respective due dates.

The dispute escalated on May 17, when Eskom issued a notice of its intention to reduce or terminate electricity supplies to certain bulk supply points after the overdue debt reached 5.26 billion rand. The move initiated a process under South Africa’s Promotion of Administrative Justice Act.

Eskom said the process had now been withdrawn following the full settlement.

"Eskom’s financial sustainability and its ability to supply electricity at affordable prices, as well as to support the delivery of a reformed, competitive market, is dependent upon its ability to improve its balance sheet by increasing revenue and reducing expenses," said Junaid Munshi, Eskom’s group executive for distribution.

Munshi said Eskom valued the City of Johannesburg as a customer and remained committed to maintaining a stable working relationship.

He also acknowledged the role of South Africa’s Minister of Electricity and Energy in facilitating a task team involving Eskom, the City of Johannesburg and City Power, which maintained uninterrupted electricity supplies to residents and businesses during the dispute.

Eskom said it would continue working with the city and other stakeholders on a longer-term solution aimed at protecting the financial viability and reliability of South Africa’s electricity supply industry.

Source: FSX Business News