Johannesburg Settles R5.25 Billion Eskom Debt

Johannesburg averted a severe power crisis after clearing a massive R5.25 billion ($328 million) debt with state electricity utility Eskom.

The settlement resolves months of escalating legal threats that endangered the power supply to South Africa’s key economic hub.

Eskom confirmed on Friday that it received the final payment instalment, ending a bitter billing dispute that flared up in May when the utility threatened to throttle electricity to the city.

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Following receipt of the funds, Eskom formally dropped all active legal proceedings against the municipality.

Electricity Minister Kgosientso Ramokgopa mediated the breakthrough deal alongside city leaders and local distributor City Power.

Johannesburg settles R5.25 billion Eskom debt (News Central TV) — Johannesburg settles R5.25 billion Eskom debt. Credit: Reuters

In addition to settling the outstanding balance, all parties agreed to establish ring-fenced accounts and stricter financial controls to prevent Johannesburg from accumulating similar debt in the future.

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Abisoye Adeyiga

Abisoye Adedoyin Adeyiga holds a PhD in Languages and Media Studies and a Master’s in Education (English Language). Trained in digital marketing and investigative journalism, she is passionate about new media’s transformative power. She enjoys reading, traveling, and meaningful conversations.