Johannesburg – Eskom has issued a stark warning to the City of Johannesburg about possible power disruptions for failing to settle arrears running into several billion rand.
In a late evening statement on Tuesday, 19 May 2026, the power utility announced its intention to reduce, interrupt, or even terminate electricity supply to certain bulk supply points in Johannesburg after arrears ballooned to R5.2 billion.
Eskom said this figure excludes an additional R1.58 billion due on 5 June 2026, underscoring the depth of the crisis.
For more than two years, Eskom has been working with the City of Johannesburg and City Power to help the metro meet its payment obligations.
Yet repeated defaults and a failure to honour the Electricity Supply Agreement have left Eskom with little choice but to escalate matters.
Eskom stressed that it was unacceptable for the City of Johannesburg to collect electricity revenue but fail to pay the power utility its share.
The power utility stated that this undermines Eskom’s efforts to remain cost-efficient and threatens its financial sustainability.
Without recovering debts, Eskom warned it cannot continue supplying electricity at affordable prices.
The arrears problem is not unique to Johannesburg.
Across South Africa, municipalities and metros have struggled with mounting electricity debt.
Eskom stated that it has been accelerating efforts to support sustainable solutions, pointing to nine municipalities that recently passed council resolutions to sign Distribution Agency Agreements (DAAs).
These agreements, part of Eskom’s Active Partnering initiative, are designed to restore the sustainability of electricity provision by enhancing both technical and financial capacity.
Under a DAA, Eskom offers services such as skill development, training, installation of smart meters, and revenue collection on behalf of municipalities.
The aim is to ensure that electricity provision remains reliable and financially viable.
In the statement, Eskom emphasised that this model was already being rolled out nationwide and could provide Johannesburg with a pathway out of its current predicament.
The looming threat of power cuts in Johannesburg highlights the tension between Eskom’s need to secure revenue and the city’s obligation to manage its finances responsibly.
Residents face the possibility of reduced or interrupted electricity supply if the arrears are not addressed, a scenario Eskom insists it wants to avoid but cannot ignore.
The utility’s message is clear: without payment, the lights in South Africa’s largest city may dim, and only decisive action, such as fully adopting the DAA framework, can prevent that undesired outcome.
