Eskom has formally warned that it will begin curtailing electricity to key bulk‑supply points across the City of Johannesburg if the municipality and its distributor, City Power, do not settle an arrears bill that now exceeds R5.2 billion. The utility’s notice, released on Tuesday evening, outlines a deadline of 8 July for the city to clear the debt, after which load‑shedding could be targeted at specific suburbs rather than the broad, rotational cuts the country has become accustomed to.
The arrears figure comprises R5.26 billion in historic debt plus a current account balance of R1.58 billion that was due on 5 June. Eskom says it has been in dialogue with Johannesburg for more than two years, trying to negotiate a realistic repayment plan, but the municipality has repeatedly missed instalments ordered by the High Court in November 2025. The utility argues that the city continues to collect electricity revenue while failing to forward Eskom’s share, a practice that “places enormous strain on its cash flow and threatens affordable power for South Africans.”
Should the deadline pass, Eskom intends to interrupt supply at four major substations. The affected zones include the CBD and inner‑city areas, affluent suburbs, and the fast‑growing mid‑rand corridor. The utility stressed that any interruption will follow a consultation process prescribed by the Promotion of Administrative Justice Act, allowing affected parties to object before the cuts are enforced.
| Substation | Areas Served | Potential Impact |
|---|---|---|
| Fordsburg | Johannesburg CBD, Auckland Park, Mayfair | Commercial hubs and high‑density residential blocks could face severe load‑shedding |
| Beyers | Fairlands, Cresta | Predominantly residential suburbs, likely to see frequent blackouts |
| Crowthorne | Central Johannesburg | Mixed‑use area; impact on schools and small businesses |
| Allandale | Midrand | Emerging office parks and logistics centres at risk |
The table clarifies which neighbourhoods could lose power first, highlighting the risk to businesses that depend on reliable electricity, especially in the city’s economic heart. Residents in the Midrand corridor may also feel the pinch as the area continues to attract investment and population growth.
Eskom’s statement also reprimanded the city for breaching a court‑sanctioned repayment schedule. While the municipal council has repeatedly claimed discrepancies in Eskom’s billing—citing a disputed R3.4 billion over‑billing claim—the utility maintains that the arrears are legitimate and that it has already extended generous credit terms.
The current standoff mirrors a similar confrontation in November 2024, when Eskom threatened to cut supply over R4.9 billion in unpaid bills. That earlier dispute was defused after the electricity minister, Kgosientsho Ramokgopa, intervened, prompting City Power to make a lump‑sum payment and appoint an independent expert to audit the alleged over‑billing. The resolution, however, was temporary; the underlying debt issue remains unresolved, and the city’s balance sheet shows little improvement.
Eskom power cuts Johannesburg: the wider municipal debt challenge
Eskom’s latest notice is not an isolated incident but part of a broader crisis that sees municipal arrears totalling over R110 billion nationwide. To address chronic non‑payment, Eskom has promoted its “distribution agency agreement,” a long‑term contract that transfers revenue collection, smart‑meter installation and staff training to the utility in distressed municipalities. So far, nine local authorities have passed council resolutions to sign such agreements, positioning Eskom as both power supplier and distributor.
Critics argue that the model concentrates too much control in Eskom’s hands and could lead to legal challenges, especially where municipalities dispute previous billing. Nonetheless, the utility maintains that the arrangement is essential for stabilising cash flow and ensuring that electricity remains affordable for ordinary South Africans.
While Eskom prepares for a possible rollout of targeted load‑shedding, the City of Johannesburg faces a stark choice: find the funds to clear the R5.26 billion arrears or risk extended blackouts that could cripple the city’s economy. As businesses brace for potential disruptions, the municipality’s financial stewardship will be under close scrutiny from both the public and the national government.
If the deadline passes and Eskom proceeds with the cuts, Johannesburg’s residents can expect intermittent power loss across the listed suburbs, with commercial districts likely bearing the brunt. The situation underscores a ticking time‑bomb for South Africa’s power sector, where municipal debt continues to erode the stability of an already strained electricity supply.