Eskom has warned that it may reduce, interrupt, or terminate electricity supply to parts of Johannesburg over unpaid debts totalling 5.26 billion rand ($315.26 million).
In a statement released on Tuesday, the power utility said the arrears are owed by the City of Johannesburg and its electricity distributor, City Power.
Eskom added that an additional 1.58 billion rand is due on June 5, further deepening the financial dispute between the two parties.
The utility said it had engaged with the Johannesburg metropolitan municipality for more than two years over the outstanding debt but claimed the city had repeatedly failed to meet repayment obligations.
As a result, Eskom issued a formal notice indicating its intention to reduce or cut electricity supply to certain bulk supply points linked to the city.
The City of Johannesburg did not immediately respond to requests for comment.
The development places additional pressure on Johannesburg, which has recently faced scrutiny over its financial management.
South Africa’s National Treasury had earlier raised concerns about the worsening fiscal position of the city, warning of potential risks to service delivery.
The debt crisis comes despite Eskom itself undergoing a gradual financial recovery after years of instability, supported by government bailouts and improved performance from its coal-fired power stations.
The utility reported its first full-year profit in eight years last year, marking a significant turnaround in its operations.
However, municipal debt remains a major challenge, with Eskom repeatedly warning that unpaid bills threaten the sustainability of South Africa’s electricity supply system.
Analysts say a potential power disruption in Johannesburg could have widespread economic implications, given the city’s role as the country’s financial and commercial centre.
