Mapaballo Borotho and Kaya News

The City of Johannesburg and Eskom have finally reached an agreement to settle their long-standing dispute over unpaid electricity bills. The agreement comes after the city agreed to pay R3.2 billion to the power utility over a period of four years.
JUST IN: Electricity minister Kgosientsho Ramokgopa and Joburg mayor Dada Morero have announced an agreement has been reached, ending the billing dispute between Eskom and City Power.
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Ramakgopa says the city has agreed to settling the R3.2 billion debt owed to Eskom in a… pic.twitter.com/gg3jKnEIMK
The agreement was reached following the Electricity Minister’s intervention, along with the South African National Energy Development Institute (SANEDI), which conducted an independent assessment of the disputed amounts.
Ramokgopa, along with Johannesburg Mayor Dada Morero, held a briefing at the Johannesburg Theatre, where they announced the settlement agreement on Tuesday, 24 June 2025.
Eskom had previously threatened to cut off electricity to the city due to the outstanding debt. Johannesburg authorities had alleged that Eskom had overcharged them, resulting in a substantial debt.
However, Ramokgopa expressed relief that a solution had been reached, ending the debt dispute between Eskom and City Power (a Power utility in Johannesburg).
Ramokgopa noted that the parties had realised that going to court was not a viable option and were pleased to have reached an out-of-court settlement.
In his remarks, Minister Ramokgopa emphasised that the cost of electricity is becoming increasingly expensive due to the need to move towards cost-reflective tariffs.
He noted that these increases are far higher than inflation, highlighting the challenges facing the country’s electricity sector.
Meanwhile, City Power is in the process of offering Free Basic Electricity to poor, indigent households in the city. The programme aims to provide eligible customers with free electricity every month.
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