Johannesburg. South Africa’s state-owned power utility Eskom has warned it may throttle electricity supply to Johannesburg after the country’s largest city and key economic hub failed to settle billions of rand in overdue payments.
In a statement issued on Tuesday, Eskom said the City of Johannesburg and its electricity distributor, City Power, owed arrears amounting to 5.26 billion rand (about $315 million), with an additional 1.58 billion rand due by June 5.
Eskom said it had issued a formal notice signalling its intention to “reduce, interrupt and/or terminate the supply of electricity” to selected bulk supply points serving the municipality and City Power.
The utility said it had engaged the Johannesburg metropolitan municipality for more than two years in an effort to resolve the growing debt, but alleged the city had repeatedly defaulted on agreed payment arrangements.
Johannesburg did not immediately respond to requests for comment.
The threat comes as Johannesburg’s financial stability has come under increased scrutiny, with South Africa’s National Treasury recently raising serious concerns over the city’s fiscal position.
Eskom itself has faced longstanding financial challenges, though it has recently shown signs of recovery following government bailouts and improved performance at its coal-fired power stations. The utility last year posted its first full-year profit in eight years.
Any disruption to Johannesburg’s electricity supply would likely intensify pressure on the city’s already strained infrastructure and services, with businesses and residents heavily reliant on stable power to sustain economic activity.
Eskom did not specify when potential supply restrictions could take effect.
