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[BUSINESS] · South Africa · 5 sources

Eskom warns of power cuts for Johannesburg over R5 bn debt

South Africa's state utility Eskom has issued a formal notice that it will reduce, interrupt or terminate electricity supply to several bulk supply points serving the City of Johannesburg unless arrears of more than R5.2 billion – plus a current‑account bill of R1.58 billion due on 5 June – are paid. The intended interruptions, slated to begin on 8 July, would affect substations in Fordsburg, Auckland Park, Mayfair, Beyers, Crowthorne and Allandale and would be progressive, resembling load‑shedding rather than a full blackout.

Eskom Acting Group Executive for Distribution Agnes Mlambo said the action, while appearing to punish residents, is necessary because the city collects electricity revenue but does not pass the payments to Eskom. The utility added that municipal arrears strain its cash flow and threaten the sustainability of affordable electricity. The dispute mirrors a similar standoff in November 2024 that was resolved after ministerial intervention. Eskom also highlighted its distribution‑agency agreement aimed at improving revenue collection in distressed municipalities.