South African state-owned power utility Eskom has issued a formal notice of its intention to reduce or terminate electricity supply to the City of Johannesburg and its regional entity, City Power over mounting debt.
In a public notice issued on Tuesday, May 19, 2026, the utility stated that the City of Johannesburg currently owes arrears amounting to R5.25 billion (equivalent of 315,744,000)
An additional R1.58 billion is scheduled for payment on Friday, June 5, 2026, according to the Eskom Gauteng Cluster.
Eskom alleged that the municipality has repeatedly failed to honour its Electricity Supply Agreement despite more than two years of engagement.
The utility said it is no longer sustainable to allow the city to collect revenue from residents without transferring the required portion to the national supplier.
According to Eskom, the growing debt burden undermines its efforts to improve its balance sheet and maintain affordable electricity pricing.
The company added in a media statement that its financial sustainability depends on effective revenue collection and reduced expenditure.
Eskom also announced on Tuesday, May 5, 2026, that nine other municipalities had moved toward signing Distribution Agency Agreements (DAAs).
These long-term contracts allow Eskom to manage technical and financial aspects of local electricity supply, including revenue collection and the installation of smart meters.
The utility did not specify when the planned interruptions or terminations in Johannesburg would begin.
The move follows a broader national trend of escalating municipal debt, which Eskom says threatens its operational viability.
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