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South Africa’s economic hub and largest city, Johannesburg, faces the looming threat of having its electricity supply throttled or cut off entirely by Eskom due to mounting unpaid bills.
The state-owned electricity utility announced on Tuesday that the City of Johannesburg and its local distributor, City Power, currently owe an outstanding debt of 5.26 billion rand (approximately $315.26 million).
Eskom further noted that an additional 1.58 billion rand is scheduled for payment by June 5, prompting the utility to issue a formal notice of its intention to reduce or terminate power to specific bulk supply points.
According to Eskom, the decision follows more than two years of negotiations with the metropolitan municipality, during which the city repeatedly failed to meet its payment obligations.
These financial troubles add to the growing scrutiny surrounding Johannesburg’s local government, coming shortly after the country’s National Treasury raised deep concerns regarding the overall stability of the city’s finances.
At the time of reporting, city officials had not yet responded to requests for comment.
The escalating dispute highlights a shifting financial dynamic for Eskom itself.
While the state utility has long been plagued by its own severe fiscal crises, it has recently begun to recover, aided by substantial government bailouts and a significant improvement in the efficiency of its coal-fired power stations.
These operational turnarounds allowed Eskom to report its first full-year profit in eight years last year, enabling the company to take a firmer stance against defaulting municipalities.
