City Power owes Eskom R6.8 billion - what it means for Johannesburg electricity

The debt: how big is it and how did it get here?

The City of Johannesburg and City Power owe Eskom a total of approximately R6.8 billion, made up of R5.26 billion in arrear (overdue) debt and a current account payment of R1.58 billion due on 5 June 2026. These figures come directly from Eskom's formal notice.

The debt did not appear overnight. City Power stopped making full, timely payments to Eskom around October 2023. What started as missed monthly payments compounded over two and a half years through a cycle of escalating threats, short-lived agreements, and broken settlements:

• 2024: Eskom took City Power to the Johannesburg High Court over an unpaid R1.07 billion. The court ordered payment; City Power appealed and payments remained stalled.
• November 2024: Eskom issued the first formal disconnection notice over a then-R4.9 billion debt. Electricity Minister Kgosientsho Ramokgopa intervened; an independent billing assessment (SANEDI) was commissioned to investigate disputed invoices.
• June 2025: A R3.2 billion settlement was agreed - City Power would pay over four years; Eskom wrote off R830 million in penalties. The deal was made a court order in November 2025.
• 2026: City Power fell behind on the settlement payments. The court order was breached. The arrear debt climbed back to R5.26 billion by May 2026.

The pattern - settlement, breach, new threat - has repeated across multiple cycles. The SANEDI report commissioned in November 2024 was submitted in April 2025 but its findings have never been publicly released.

Eskom's formal notice and the July 8 timeline

On 15 May 2026, Eskom issued a formal notice under the Promotion of Administrative Justice Act (PAJA) - the legal process required before a major utility can be cut off. The notice gives the city and affected stakeholders until 17 June 2026 to submit written representations arguing why supply should not be interrupted.

If no resolution is reached, Eskom may begin progressive supply interruptions from 8 July 2026. "Progressive" means starting at specific bulk supply points - the large substations that feed whole suburbs - and expanding if the debt remains unpaid.

Eskom's Acting Group Executive for Distribution, Agnes Mlambo, said: "It is important that you maintain the payments that are due to Eskom... We have just celebrated 365 days without load shedding, and that can only be possible if all our customers pay for the electricity we supply."

Why is the city failing to pay?

According to Electricity Minister Ramokgopa, the core problem is that Johannesburg residents are paying their electricity bills - but City Power is not ringfencing and forwarding that revenue to Eskom. The electricity payments are being absorbed into the city's general operating budget to cover other expenses, including a wage bill that Finance Minister Godongwana has described as unsustainable.

The city's finances are under severe pressure: Johannesburg carries a total creditor bill of roughly R25.2 billion against R3.9 billion in cash reserves. Commercial banks cancelled R2.1 billion in overdraft facilities after a bond suspension. The GCR ratings agency put the city on "rating watch negative" in April 2026.

City Power itself is also struggling operationally. Technical losses - electricity generated but never billed, due to theft, aging infrastructure, and meter failures - are running at approximately 30%, compared to a benchmark of 7%. The billing system has had persistent problems since City Power took over billing from the City of Johannesburg in July 2025, including incorrectly programmed meters, estimated bills for 90,000 households, and a major e-billing outage in January 2026.

What the city says it will do

Mayor Dada Morero said the city "will not fight Eskom" and promised a turnaround plan. The main elements:

• A EUR 200 million (roughly R3.8 billion) loan from KfW, the German development bank, expected to be finalised by end of June 2026 and earmarked for energy infrastructure.
• Land sales from an estimated R23.2 billion book value of vacant land.
• Requests for investigations by National Treasury, the Public Protector, and the Special Investigating Unit (SIU) into city finances.

Both the KfW loan and the land valuations are unconfirmed claims from the mayor's office. No signed contract or independent valuation has been released publicly.

The DAA model: Eskom taking over billing

Minister Ramokgopa has said Eskom is "seriously looking at" implementing a Distribution Agency Agreement (DAA) for Johannesburg. Under a DAA, Eskom installs and reads its own smart meters in City Power's area, collects electricity revenue directly from residents, and ringfences the funds before paying City Power a distribution fee. This removes the municipality from the revenue chain.

DAAs are already in place at Merafong City (Carletonville) and several other municipalities that previously faced Eskom disconnection threats. Nine of the 14 municipalities served with PAJA notices in March 2026 have agreed in principle to adopt DAAs.

What this means for Johannesburg residents

As of 22 May 2026, electricity supply is normal. The July 8 date is a legal threshold, not a confirmed cut. Several things could prevent cuts:

• A payment agreement or lump-sum payment before 17 June
• A court interdict from the city
• Ministerial intervention, as happened in November 2024
• A signed DAA arrangement

However, the pattern of the past two years suggests that each resolution has been temporary. The structural problem - City Power not ringfencing electricity revenue - has not been fixed.

If cuts do begin on 8 July, residents in areas served by affected bulk supply points would face unscheduled blackouts on top of any other maintenance-related outages. The areas most mentioned in reporting are Fourways, Sandton, Soweto, Orange Farm, and Ivory Park. Hospitals, water pumping stations, and traffic lights would also be affected.

How to stay informed and prepared

• Track today's City Power outages: City Power outages page
• Follow official communications from City Power on @CityPowerJhb - they announce planned and unplanned outages
• City Power fault line: 0860 CITY CP (0860 227 283)
• Eskom for areas not served by City Power: 0860 037 566
• Keep basic supplies (torch, power bank, water) in case of extended outages