Johannesburg settles R5.25 billion Eskom debt

The City of Johannesburg has fully settled its R5.25 billion (approximately US$328 million) overdue debt to Eskom, South Africa’s state-owned electricity utility. The settlement follows a mediation process led by the Ministry of Electricity and Energy, which aimed to resolve a long-standing billing dispute.

The resolution includes a final payment of more than R1.8 billion received by Eskom on Friday. Consequently, Eskom has officially withdrawn its legal process under the Promotion of Administrative Justice Act, which had previously threatened to reduce or terminate electricity supplies to certain City Power supply points within the Johannesburg metropolitan area.

The settlement removes the immediate threat of power restrictions for the country’s largest economic hub, providing stability for businesses and residents. The dispute had highlighted the financial tensions between South African municipalities and state-owned service providers regarding billing, collections, and infrastructure maintenance.