Eskom has warned that parts of Johannesburg could face power cuts after the utility announced plans to reduce, interrupt, or terminate power supply to certain bulk points serving the City of Johannesburg and City Power over unpaid debt exceeding R5.2 billion.
The utility said the City of Johannesburg and City Power currently owe Eskom more than R5.25 billion in arrears, excluding an additional R1.58 billion due on the current account by 5 June 2026. Eskom described the situation as a “complete failure” by the municipality and City Power to honour their electricity supply agreement.
The warning raises concerns for residents, businesses and industries across Gauteng as winter electricity demand continues increasing.
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Eskom Threatens Supply Interruptions in Johannesburg
In a statement issued on Tuesday, Eskom confirmed it had issued formal notice of its intention to reduce, interrupt or terminate electricity supply to certain bulk supply points linked to Johannesburg and City Power.
The utility said repeated payment defaults over several years forced Eskom to escalate the matter.
According to Eskom, it has spent more than two years attempting to work with the metro to improve payment arrangements and stabilise the debt situation.
However, the utility said the arrears continue to grow despite these interventions.
“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,” the utility said.
How Much Does Johannesburg Owe Eskom?
Eskom said the current debt owed by the City of Johannesburg and City Power stands at:
| Category | Amount |
|---|---|
| Outstanding arrears debt | R5 255 421 994.16 |
| Current account due by 5 June 2026 | R1 582 093 993.32 |
| Total potential exposure | More than R6.8 billion |
The utility warned that unpaid municipal debt continues threatening Eskom’s financial recovery and long-term sustainability.
Why Eskom Says the Debt Crisis Matters
Eskom argues that municipalities collect revenue directly from residents and businesses for electricity usage, but many fail to transfer the required payments back to Eskom.
The utility said this creates major financial pressure on national electricity infrastructure.
“It simply cannot be acceptable that municipalities collect electricity revenue but fail to pay Eskom,” the utility said.
According to Eskom, growing municipal debt affects:
- Electricity infrastructure investment
- Maintenance and repairs
- Grid stability
- Affordability of electricity
- Long-term energy planning
The utility also warned that rising arrears may undermine efforts to stabilise South Africa’s electricity supply system after years of load shedding.
Municipal Debt Across South Africa Continues Rising
Johannesburg’s debt forms part of a much larger national municipal debt crisis affecting Eskom.
According to Eskom acting group executive for distribution Agnes Mlambo, municipal debt increased dramatically from approximately R20 billion in 2019 to more than R105 billion by September 2025.
That amount represented the majority of Eskom’s national arrears debt.
Energy analysts say many municipalities continue struggling with:
- Revenue collection failures
- Illegal electricity connections
- Infrastructure losses
- Corruption allegations
- Ageing networks
- Non-payment by consumers
Gauteng municipalities remain among the country’s largest electricity users because of dense residential populations and industrial activity.
Could Johannesburg Residents Experience Power Cuts?
Eskom has not yet confirmed exactly which areas may be affected should interruptions proceed.
However, the notice has raised concerns about the possibility of targeted bulk supply disruptions affecting large parts of Johannesburg supplied through City Power infrastructure.
Energy experts say bulk interruptions could potentially impact:
- Residential suburbs
- Businesses
- Traffic systems
- Shopping centres
- Hospitals and clinics
- Schools
- Industrial areas
The situation may become even more sensitive as winter temperatures continue increasing electricity demand across Gauteng.
Eskom Pushes Distribution Agency Agreements
As part of efforts to recover municipal debt, Eskom said it has been introducing Distribution Agency Agreements with municipalities across South Africa.
The agreements allow Eskom to provide various operational and technical services aimed at improving electricity revenue collection and network sustainability.
According to Eskom, the agreements may include:
- Revenue collection assistance
- Smart meter installation
- Technical support
- Skills training
- Infrastructure management support
The utility said nine municipalities have already approved council resolutions linked to the agreements.
Johannesburg’s Financial Challenges Continue
The latest Eskom warning comes amid broader concerns around Johannesburg’s finances and infrastructure management.
The city has faced increasing scrutiny over:
- Service delivery failures
- Infrastructure maintenance backlogs
- Water interruptions
- Electricity outages
- Revenue collection challenges
- Rising municipal debt
Economic analysts warn that financial instability in major metros like Johannesburg may have broader consequences for Gauteng’s economy because the province remains South Africa’s economic hub.
What This Means for Gauteng Residents
For Gauteng residents, Eskom’s latest warning highlights growing pressure on municipal finances and electricity infrastructure ahead of peak winter demand.
If supply interruptions are implemented, residents and businesses may face:
- Electricity instability
- Potential outages
- Increased operational disruptions
- Traffic congestion from affected signals
- Economic pressure on businesses
- Greater uncertainty during winter demand peaks
The situation also raises concerns about the long-term sustainability of municipal electricity systems across Gauteng.
Frequently Asked Questions
How much does Johannesburg owe Eskom?
Eskom says the City of Johannesburg and City Power owe more than R5.25 billion in arrears, excluding current account payments still due.
Could Johannesburg experience electricity cuts?
Eskom has warned it may reduce, interrupt or terminate supply to certain bulk supply points linked to Johannesburg and City Power.
Why is Eskom threatening power interruptions?
The utility says repeated payment defaults and growing municipal debt forced it to issue formal notice.
Is this the same as load shedding?
No. Eskom described the situation as possible supply interruptions linked to unpaid municipal debt rather than national load shedding schedules.
Has Johannesburg responded?
At the time of publication, comments from the City of Johannesburg and City Power were still outstanding.
What Happens Next?
Eskom is expected to continue engagements with the City of Johannesburg and City Power in the coming days as pressure mounts to resolve the debt dispute before further escalation.
The utility may also begin public participation and regulatory processes required before any large-scale bulk supply interruptions can be implemented.
Further responses from Johannesburg officials and City Power are expected as concerns grow over the possible impact on residents, businesses and Gauteng’s broader economy.
