Eskom vs City Power Dispute Settled: Joburg Agrees to R3.2 Billion Debt Repayment Over 4 Years

by Hope Ngobeni

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A major breakthrough in South Africa’s ongoing electricity challenges has been reached. Electricity Minister Kgosientsho Ramokgopa and Johannesburg Mayor Dada Morero announced today that the long-standing billing dispute between Eskom and City Power has officially been resolved.

The City of Johannesburg has agreed to settle its staggering R3.2 billion debt to Eskom over a four-year period, marking a significant turning point in efforts to stabilise electricity supply and improve financial cooperation between national and municipal power entities.

Speaking at the announcement, Ramokgopa welcomed the agreement as a “pragmatic and responsible step” toward strengthening service delivery and ensuring accountability. The resolution ends months of tension and finger-pointing over unpaid bills and technical disputes.

Mayor Morero confirmed that payment terms had been structured to ensure affordability while maintaining essential services for residents. The agreement is expected to bring relief to Johannesburg ratepayers, who’ve often found themselves caught in the crossfire of the dispute.

The deal signals a move toward improved coordination in the country’s strained energy sectorβ€”an important win amid ongoing concerns about Eskom’s financial sustainability and the broader electricity crisis gripping the nation.

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