Eskom threatens cut power in Joburg over R5.2 billion debt

Added: 2026-05-21

[00:00:00]Eskom has issued a stark warning that parts of Johannesburg could face electricity cuts from the 8th of July as the city of Johannesburg has fallen behind on payments of more than 5.25 billion rand. This is not the first clash between the power utility and the city. Eskom says City Power has failed to honor a court-ordered payment agreement from November 2024 covering both old debts and current electricity bills. If the situation continues, the full debt could be called in immediately. If implemented, the cuts could hit parts of of the city including the CBD, Midrand, Ferndale, and surrounding areas all being supplied by Eskom. On the line is Eskom's acting group executive of distribution, Agnes Mlambo. Good morning, Agnes. Good to have you on 702.

[00:00:55]Good morning, Ray, and good morning to you 702 listeners. This, of course, is very concerning. You've got the city of Johannesburg listening this morning.

[00:01:04]What response have you received from City Power so far concerning these payments?

[00:01:11]We are continuing to engage with the city obviously to find a solution to remedy the current situation.

[00:01:21]And as we speak, the talks are ongoing.

[00:01:25]And therefore, we have not yet reached any conclusion as of now. Yeah. Looking at the details of this, where did the payments fall behind? There was that court order. Things were working themselves out. Now it's gone totally wrong. What happened?

[00:01:43]Well, the court order it dates back to November 2024.

[00:01:50]About a year later, the city has been paying their contra current account a couple of days late and this has been ongoing since November. But it is only now that they have fallen behind with more than 1 month of that current account which has now a brought in the full payment that is under the payment arrangement and covered by the court order due in full hence we are now referring to the 5.2 billion that is now due and payable to Eskom. Yeah, it's concerning. The mayor is now reportedly according to the Sowetan newspaper this morning turning to the electricity minister for help. We had the mayor also speaking to the finance minister asking for help. What do you make of this? Are you also involved in those talks by the way?

[00:02:47]Yes, we are as I've already indicated that we continue to engage with the city. But at this point in time those engagement are directly with the city.

[00:03:00]Of course the city is within their rights to request for any intervention. But at this point in time where we are it is important that we maintain our own financial sustainability as you would know we have just celebrated the 365 days without load shedding and that can only be possible if all our customers pay for the electricity we supply so that we can make sure that we sustain this operational success and make sure that no any of our customers are not negatively affected by any non-payment.

[00:03:40]So at this point in time we are engaging with the city. We are looking for solutions but without compromising our financial sustainability as Eskom in the country. That makes perfect sense. It really does.

[00:03:54]Listeners in Johannesburg may argue though that why are we being punished?

[00:03:58]Why is it that our lights may be cut off? Not saying they're going to be, but may be cut off. Shouldn't there be a legal process, attachment of assets? Why go for us? Why punish us, residents of Johannesburg?

[00:04:12]We are actually not punishing the residents of Johannesburg. If anything, we are protecting the residents of Johannesburg.

[00:04:20]We are also protecting the country, which is why we are taking the step. Uh it is important for us to make sure that we are paid for what is due. It is important for us that we continue to supply electricity to the country. So, this is not about punishment. If anything, it is protecting the city and it is protecting the residents. We cannot afford to allow this debt to grow any further. As in our view, this will actually mean that we are putting the current system at risk and therefore that would really be negatively affecting the country. It is important that we maintain the payments that are due to Eskom. No, absolutely, absolutely. Maybe you can answer this and something I picked up in the story that if we do get to the 8th of July and there is no agreement and the lights do go out, they'll go out in certain areas. Why certain areas? How does that work?

[00:05:19]When in terms of the process when we do the cut off, we do not cut do that we don't cut off the city 100% of the areas at the same time.

[00:05:31]It becomes progressive. And that is why this point in time we've highlighted the certain areas that will be affected, but it is meant to be progressive from day one and then obviously if we do not find any remedy uh to the situation, it will then cover the whole city. But remember, some of the customers within the city are directly supplied by Eskom, and those are the customers that will not be affected by the debt and by this process. Yeah. So, what happens next? I mean, what's the next step? I know you've said that you are talking to them. When are the next talks set to take place? And I suppose what are you hoping for? Is there some sort of, you know, if you pay us so much a month we can resolve this? Will you revise what was agreed to before?

[00:06:22]Currently, 5.2 billion is is due.

[00:06:27]Uh with the current account of about 3 billion, and the rest of it comes from the historical debt.

[00:06:33]First and foremost, we need to be paid what is overdue uh from the current account, and then obviously uh the payment arrangement to the 2.5. So, there are two processes that we're following. Uh one is the cutoff, and the other one is enforcement of the court order, which will then obviously covers the 5.2 billion. It is in our interest to get the 3 billion that is overdue, as well as make sure that the payment arrangements uh for that uh overdue or historical debt is being paid as per the court order, and making sure that all future current accounts are being paid.

[00:07:13]So, that is why we are following those two processes. And I'm I I want to stress this array, that what is important is to make sure that what is being supplied to the city is being paid for. We also do know that the customers of the city are honoring their obligations to the city, and it is important that what is being paid to the city by the customers of the city, what is being supplied by Eskom to the city is being paid for. Yeah.

[00:07:46]Agnes, any other municipalities that we need to know about who also might fall foul of Eskom over the past over the next 6 months because Johannesburg's not alone in not paying its bills.

[00:08:00]We have consistently communicated to the challenges that we have.

[00:08:05]We have indicated that we've got a 61 municipalities and that are under the debt relief program that have not honored the terms and conditions of the program.

[00:08:19]I am currently not in a position to give the names of those municipalities but as and when we publish and follow the part of process which is the notifications, we will be able to discuss the details but we do have 111 billion that is currently overdue from the various municipalities. This also includes the city and as we follow this process, we will be in a position to discuss the details with the public but we will follow due process.

[00:08:53]Acting Group Executive of Distribution at Eskom, Agnes Mlambo. Thank you so much for coming on to 702 this morning.

[00:09:00]111 billion rand outstanding by municipalities in South Africa. Eskom is a business. It's a business like any other business. They do provide a service yet very few are paying.

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