Tuesday, 19 May 2026: The City of Johannesburg (CoJ) and/or City Power (CP) currently owes Eskom an arrear debt of R5 255 421 994. 16 billion, excluding the current account of a further R1 582 093 993.32 due on 5 June 2026. Eskom has been working with CoJ and/or CP for over two years to support the metro in meeting its payment obligations.
As a result of CoJ/CP’s continued failure to honour its Electricity Supply Agreement with Eskom, including repeated defaults, Eskom has been forced to issue a notice of its intention to reduce, interrupt and/or terminate the supply of electricity to certain bulk supply points against the City of Johannesburg and City Power.
Eskom maintains it simply cannot be acceptable to the City’s residents and all South Africans that COJ/CP is collecting electricity revenue but failing to pay over Eskom’s share. While Eskom continues to focus on being cost-efficient, escalating municipal and metro arrear debt undermines these efforts. Eskom’s financial sustainability and ability to supply electricity at affordable prices is dependent upon its ability to improve its balance sheet by increasing revenue and reducing expenses. Revenue can only be increased by collecting electricity debts and/or increasing electricity tariffs.
Across the country, many municipalities and metros are working with Eskom to develop sustainable debt solutions and Eskom is continuing to accelerate its support for this approach. Eskom announced on 5 May that nine municipalities have received council resolutions to sign Distribution Agency Agreement’s following consultation processes.
Eskom provides a solution to support municipalities and metros to sustainably deliver electricity
Eskom has developed the Distribution Agency Agreement (DAA), which is a long-term, non-permanent, contract between a municipality or metro and Eskom, as part of the Active Partnering initiative.
This agreement offers a suite of services and solutions aimed at restoring the sustainability of electricity provision in a municipality or metro, by enhancing its technical and financial sustainability. The services include skill development and training, replacement or installation of smart meters, as well as Eskom collecting revenue on behalf of the municipality. Eskom is working nationwide to assist in the rollout of this initiative.
ENDS