City of Joburg pays R4.3 billion towards Eskom electricity debt
The City of Johannesburg has paid R4.3 billion to Eskom following a court order to settle outstanding electricity debts. The payment comes after months of financial disputes and threats from the power utility to cut off electricity supply to the city.
Why it matters
This highlights the ongoing financial instability of South African municipalities and the critical infrastructure risks posed by utility debt crises.
The City of Johannesburg. Picture: iStock
The City of Johannesburg has paid R4.3 billion towards its electricity debt to Eskom.
The payments are a result of an arrangement between the city and the power utility following a court order. In June 2024, the High Court in Johannesburg ordered the City of Joburg and City Power to pay R1.073 billion, including interest, for the unpaid electricity account.
The power utility had approached the court the month before in an attempt to get the regional power utility to settle its debt. This after the regional utility started to default on its payments from October 2023.
The debt relates to bulk electricity that Eskom supplied to the City of Joburg. The bulk electricity supply is in terms of Electricity Supply Agreements binding between Eskom and the City of Joburg.
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