The power utility Eskom and the City of Ekurhuleni have reached a court-enforced settlement over an outstanding electricity debt of R3.4 billion. The agreement comes after a period of rising tension between the two parties, during which there were concerns about possible electricity supply disruptions to the metro area. With the new settlement in place, ongoing legal disputes between the utility and the municipality have been halted, creating a structured plan to repay the debt and strengthen financial cooperation moving forward.
The situation had escalated earlier this month when Eskom issued a formal notice under the Promotion of Administrative Justice Act. The notice warned residents and businesses that the utility could reduce or completely interrupt bulk electricity supply to the metro due to continued unpaid arrears. Such a step would have had serious consequences for households, industries, and commercial operations across the municipality. The notice created widespread concern about the stability of the power supply in the area.
Following the warning, senior officials from both Eskom and the municipality entered into negotiations to resolve the dispute. These discussions resulted in an agreement that outlines how the outstanding debt will be paid while ensuring that electricity services remain stable. The deal provides a clear repayment structure that addresses both the historical arrears and the management of future electricity .
As part of the immediate implementation of the agreement, the City of Ekurhuleni has already paid R1.7 billion toward its debt in March. This payment represents half of the total outstanding amount. According to the terms of the settlement, the remaining balance will be paid over the next 18 months. During this period, the municipality has also committed to keeping up with its current monthly electricity bills while gradually reducing the historical debt.
Municipal leaders have described the agreement as an important step toward restoring financial stability in the relationship between the city and Eskom. They have also encouraged residents and businesses to continue paying their municipal service charges on time. Officials explained that consistent revenue collection is essential for the municipality to meet its obligations to Eskom and maintain reliable public services.
Eskom has stated that it has a responsibility to protect the financial sustainability of the national electricity system. The utility said it must treat all customers fairly and ensure that it remains financially stable in order to continue supplying reliable electricity across the country.
With the agreement now set to become an official court order, the immediate risk of electricity cuts due to unpaid debt has been removed. Both Eskom and the City of Ekurhuleni have said they will maintain open communication and transparency to ensure the success of the repayment plan and the continued delivery of electricity services to the metro.
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