The City of Johannesburg has paid R4.3 billion towards its outstanding electricity debt to Eskom, following sustained pressure from the national utility and a High Court order issued in June 2024 requiring payment of at least R1.073 billion with interest for unpaid accounts.

Debt Settlement And Ongoing Repayment Commitments

According to Vhahangwele Nemakonde, the City of Johannesburg made the R4.3 billion payment as part of its broader commitment to address a total debt to Eskom that recently climbed to R5.2 billion. Eskom threatened electricity supply interruptions earlier in May 2026, insisting the city settle its arrears or risk disruption.

Court papers show that the City of Johannesburg and its power distributor, City Power, were ordered to pay over R1 billion in outstanding debts in June 2024. The city has since committed to making further payments totalling R5.1 billion by 21 August 2026, reflecting the scale of Johannesburg’s financial obligations to secure electricity supply for its residents.

Service Disruptions And Community Impact

In late May 2026, Eskom began disconnecting streetlights across parts of Johannesburg after City Power fell into arrears on certain small power user accounts, Business Explainer reported. These disconnections affected public safety and daily activity in impacted neighbourhoods, highlighting the real-world effects of municipal financial distress.

Local businesses and residents have raised concerns over the reliability of electricity supply, as Eskom’s actions demonstrated the utility’s willingness to enforce debt repayment by restricting services. Nkosikhona Malinga-Mnisi stated that Eskom’s demand for the city to pay its full debt or face further service interruptions remains in effect while repayment schedules are implemented.

Wider Significance For Municipal Finance And Power Supply

The City of Johannesburg’s ongoing struggle with Eskom debt underscores persistent challenges faced by South African municipalities in financing electricity provision. The substantial sums involved and repeated threat of interruptions put pressure on local government to manage budgets more effectively and uphold their obligations to national utilities.

Observers note that the payment and commitment to settle by August 2026 are critical to maintaining uninterrupted power supply and restoring confidence among residents and businesses alike. The next deadline for payment is set for 21 August 2026, as the city works to avoid further disruptions and legal action from Eskom.