Johannesburg Secures Power Supply Deal with Eskom to Avoid Blackouts

Johannesburg’s executive mayor, Dada Morero, announced that the city has reached a partnership agreement with Eskom and City Power to keep electricity flowing despite a R5.2 billion debt. The deal, described as a distribution‑agency agreement, will allow Eskom to provide technical support and manage revenue collection for the municipality for up to 36 months, with ring‑fenced billing revenue earmarked to service the debt.

Minister of Electricity and Energy Kgosientsho Ramokgopa said the arrangement reaffirms the existing electricity‑supply contract and prevents interruption of supply to bulk‑supply points. He emphasized that Johannesburg “is just too big to fail” and that customers paying their rates must not become “collateral damage.” The agreement aims to address both technical and non‑technical losses that have contributed to the city’s arrears and to restore the municipal power utility to a healthier financial position.

The arrangement is part of broader efforts to stabilise Eskom’s liquidity, which is strained by roughly R130 billion owed by municipalities nationwide. Johannesburg, contributing about 60 % of South Africa’s GDP, will continue to receive uninterrupted electricity while the debt repayment plan is implemented.