Overview
- Eskom has formally warned it will reduce, interrupt or terminate supply to certain bulk points serving the City of Johannesburg and City Power unless an arrears balance of about R5.25 billion plus a near‑term R1.58 billion payment is addressed.
- The utility says any interruptions would be progressive and target specific areas and times, similar to localized load‑shedding, rather than a full metro blackout.
- Electricity Minister Kgosientsho Ramokgopa has advanced Eskom’s Distribution Agency Agreement as a likely option for Joburg, a model that lets Eskom install meters, manage billing and collect payments directly.
- Mayor Dada Morero is pursuing a proposed €200 million KfW loan to shore up City Power while national and creditor pressure grows through Treasury warnings, lenders’ refusals and a Moody’s review of the metro’s credit rating.
- The dispute exposes a wider crisis of municipal arrears that rose sharply since 2019 and now threatens Eskom’s balance sheet and essential services such as hospitals, businesses and water pumping if the payment impasse is not resolved.