The City of Johannesburg’s R4.9 billion debt to Eskom, with an additional R1.4 billion due by the end of November 2024 has sparked tension between the two organisations. Eskom now threatening to implement load shedding in Johannesburg as a result of the unpaid debt.

Unpaid municipal debt is a core issue for Eskom, and Eskom spokesperson, Daphne Mokwena, says, “We can no longer accommodate entities that do not pay without harming our own business. Borrowing money to operate while we should be paid for the electricity we provide by the municipalities we supply to is unsustainable.” As of September 2024, the total unpaid debt to Eskom is around R90 billion, an existential threat to the entity and South Africa’s energy.

Eskom, in an official notice, is threatening to interrupt the power supply as a result of this unpaid debt. 

COJ strikes back 

The City of Johannesburg (COJ) and its power entity City Power, have demanded that Eskom withdraw its threat to interrupt the city’s power supply “within five days.” COJ has said that there is unfair billing that they have engaged Eskom with but “Eskom has failed to provide clarity over this issue.” COJ has been in contact with Eskom about overbilling since July this year and alleges that the total amount in question is R3.4 billion. Despite this COJ says, “ Eskom has failed to address, placing additional strain on the city’s resources.” 

Load shedding as punishment 

Citizens are angry and worried, as they feel they are being punished despite paying their bills. This comes at a time when Eskom has secured more than 200 days without load shedding and this ongoing dispute threatens confidence in both entities. 

COJ say that they are committed to ensuring a stable electricity supply and that Eskom has no right to implement load shedding as a punishment.

Updates

In a meeting held on Monday the 11th of November 2024, the City of Johannesburg has agreed to pay Eskom the R1.4 billion owed to the entity at the end of November. Eskom responded by officially withdrawing its statement of intent to interrupt power supply.  Energy and Electricity Minister Kgosientsho Ramokgopa says “this does not resolve the ongoing dispute of overbilling that dates back to 2019.”