South Africa’s state-owned power utility, Eskom, has warned that it could reduce or disconnect electricity supply to the City of Johannesburg and its power distribution entity, City Power, over rising unpaid debt.
In a public notice issued on May 19, 2026, Eskom disclosed that the City of Johannesburg currently owes about R5.25 billion in outstanding arrears, with an additional R1.58 billion expected to become due on June 5, 2026.
According to the Eskom Gauteng Cluster, the municipality has repeatedly failed to comply with the terms of its Electricity Supply Agreement despite more than two years of engagements between both parties.
The utility argued that it is unsustainable for municipalities to continue collecting revenue from consumers without remitting the required payments to the national power supplier.
Eskom further stated that the growing municipal debt burden continues to weaken its financial position and affects efforts to maintain affordable electricity tariffs and improve operational sustainability.
The company noted that its long-term financial stability depends heavily on efficient revenue collection and cost management.
Meanwhile, Eskom also announced that nine other municipalities had moved closer to signing Distribution Agency Agreements (DAAs), which would allow the utility to oversee technical and financial aspects of local electricity distribution, including revenue collection and smart meter deployment.
The power utility did not indicate when the proposed electricity interruptions or disconnections in Johannesburg could begin.
The latest development reflects wider concerns over escalating municipal debt across South Africa, which Eskom says continues to threaten its operational viability.