Eskom’s Ultimatum Over City’s R5.2bn Unpaid Debt Threatens Power Cuts for Joburg Residents

ActionSA notes with grave concern Eskom’s renewed threat to disconnect power to parts of Joburg over City Power’s escalating debt, to the sum of R5.2 billion. This development is an indictment on the City’s financial management and governance failures. Residents and businesses who pay for services timeously continue to bear the brunt of incompetent and negligent leadership.

The notice to the city comes on the backdrop of Eskom announcing a milestone 365 days without loadshedding. This has brought relief to a multitude of South Africans who have endured economic destruction, disrupted livelihoods, and endless frustration. Yet, as the country celebrates progress in stabilising electricity supply, the City of Joburg risks plunging its own residents back into darkness because, simply because it has failed to pay its bills.

Johannesburg is a strategic and global economic mecca. Any interruption to electricity supply will have devastating consequences for households, hospitals, schools, small businesses, and the broader economy. At a time when the country is attempting to rebuild confidence after years of loadshedding, the City’s inability to honour its obligations threatens to reverse hard-won progress.

ActionSA is unequivocal that municipalities must attend to payment of bulk service providers as a non-negotiable responsibility. Failure to do so undermines service delivery, damages investor confidence, and places immense pressure on already struggling residents.

The City of Johannesburg must urgently:

• Present a credible and transparent repayment plan to Eskom;
• Account to residents on how this debt has escalated to such an exorbitant extent;
• Implement consequence management against officials responsible for financial mismanagement; and
• Prioritise service delivery over wasteful expenditure and political self-interest.

Residents of Joburg should not live under the consistent threat of darkness because of failures at City Hall. The people of this city deserve a government that is financially responsible, transparent, and capable of protecting essential services.

ActionSA will continue to demand accountability and responsible governance to ensure that Johannesburg does not become a symbol of collapse and dysfunction.

ActionSA JHB Success: Won 16% of the vote in Johannesburg in 2021.