City of Johannesburg settles R5.25bn debt with Eskom

The City of Johannesburg and its electricity utility, City Power, have settled a long-standing debt of over R5.25 billion owed to the national power utility, Eskom. The final payment of R5,255,421,994.16 was confirmed by both Eskom and the Department of Electricity and Energy.

The resolution follows a mediation process led by Electricity and Energy Minister Kgosientsho Ramokgopa, which aimed to resolve billing disputes that had threatened the stability of the city’s electricity supply. As a result of the settlement, Eskom has withdrawn legal proceedings initiated under the Promotion of Administrative Justice Act (PAJA) regarding the outstanding arrears.

Minister Ramokgopa noted that the intervention demonstrated how intergovernmental cooperation can resolve disputes between state institutions without compromising service delivery. Johannesburg Executive Mayor Dada Morero stated the payment is a milestone in strengthening the city’s financial position and demonstrating a commitment to meeting municipal obligations.