South Africa’s state owned electricity utility, Eskom, says the City of Johannesburg has paid R4.3 billion towards its outstanding electricity debt, marking a significant reduction in arrears while leaving a substantial balance still to be resolved.
In a statement issued on Friday, Eskom confirmed that the payment forms part of ongoing engagements between the utility and South Africa’s largest metropolitan municipality over unpaid electricity accounts. The utility also announced that it has extended its public consultation process regarding Johannesburg’s outstanding electricity debt until August, providing additional time for stakeholders to submit views on the matter.
The payment comes as Eskom continues efforts to improve revenue collection from municipalities across South Africa, many of which have accumulated sizeable debts over several years. Municipal arrears have become a persistent challenge for the utility, affecting its cash flow and its ability to sustain investment in electricity generation, transmission and distribution infrastructure.
Johannesburg’s payment represents one of the most significant repayments made by a municipality in recent months. However, Eskom noted that outstanding arrears remain and discussions with the city will continue as both parties seek a sustainable resolution to the remaining debt.
The consultation process forms part of Eskom’s statutory procedures and is intended to gather public input before any further measures relating to the municipality’s electricity account are considered. The extension until August reflects the utility’s decision to allow additional participation from affected stakeholders.
The issue highlights the broader financial pressures facing local governments across South Africa, where municipalities are balancing growing service delivery demands with constrained revenues and ageing infrastructure. Reliable municipal finances remain an important component of ensuring the long term sustainability of electricity supply across the country and the wider Southern African region, where South Africa’s energy sector continues to play an influential role in regional economic integration and power trade.
Eskom has maintained that improving municipal payment discipline is essential to strengthening the country’s electricity sector while supporting continued investment in infrastructure needed to meet future demand. The City of Johannesburg has not publicly indicated that the latest payment represents a final settlement of the account, and engagements between the municipality and Eskom are expected to continue.
According to Eskom, the City of Johannesburg has now paid R4.3 billion towards its outstanding electricity debt. Based on the prevailing exchange rate cited by the utility, the payment is equivalent to approximately US$256 million.
