Eskom is threatening to leave areas in darkness due to billions in unpaid debt
Image: Facebook/Eskom
Power utility Eskom has announced that it may reduce, interrupt, or cut electricity to parts of Johannesburg after the city and City Power failed to pay more than R5 billion in outstanding debt.
In a statement issued to the media, the state-owned utility said it had been working with the city for two years to resolve the arrears, but repeated missed payments have forced Eskom to consider cutting power to certain bulk supply points.
The utility warned that unless the debt is addressed, electricity supply to key areas could be affected.
"The City of Johannesburg (CoJ) and/or City Power (CP) currently owes Eskom an arrear debt of R5 255 421 994. 16 billion, excluding the current account of a further R1 582 093 993.32 due on 5 June 2026," the utility said.
"As a result of CoJ/CP’s continued failure to honour its Electricity Supply Agreement with Eskom, including repeated defaults, Eskom has been forced to issue a notice of its intention to reduce, interrupt and/or terminate the supply of electricity to certain bulk supply points against the City of Johannesburg and City Power,"
The utility added that "it simply cannot be acceptable to the City’s residents and all South Africans that COJ/CP is collecting electricity revenue but failing to pay over Eskom’s share".
"While Eskom continues to focus on being cost-efficient, escalating municipal and metro arrear debt undermines these efforts. Eskom’s financial sustainability and ability to supply electricity at affordable prices is dependent upon its ability to improve its balance sheet by increasing revenue and reducing expenses. Revenue can only be increased by collecting electricity debts and/or increasing electricity tariffs".
IOL previously reported that Eskom said that nine municipalities have agreed to sign Distribution Agency Agreements following a nationwide consultation process, as part of efforts to recover unpaid electricity bills.
This comes as the debt owed to the utility continues to mount nationally, currently standing at R111.6 billion, despite interventions by the National Treasury through the municipal debt relief programme.
"Eskom has developed the Distribution Agency Agreement (DAA), which is a long-term, non-permanent contract between a municipality or metro and Eskom, as part of the Active Partnering initiative.
"This agreement offers a suite of services and solutions aimed at restoring the sustainability of electricity provision in a municipality or metro, by enhancing its technical and financial sustainability".
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