- OUTA says Eskom’s process to interrupt electricity supply to Johannesburg remains active despite reports of a settlement.
- Civil society group is considering legal action to protect residents and businesses from becoming collateral damage in the dispute.
- Johannesburg’s estimated R7.2 billion debt to Eskom continues to threaten power supply to South Africa’s economic hub.
The Organisation Undoing Tax Abuse (OUTA) has warned that Johannesburg remains at risk of electricity supply interruptions after Eskom confirmed that its legal process to reduce or cut power to the City of Johannesburg (CoJ) remains active.
The warning follows widespread reports that Eskom and the City had reached an agreement to resolve the municipality’s escalating debt dispute. However, OUTA says no tangible evidence has been provided to demonstrate that a final settlement has been concluded and that Eskom’s Promotion of Administrative Justice Act (PAJA) process continues unchanged.
According to OUTA Executive Manager Julius Kleynhans, many residents and businesses were left with the impression that the matter had been resolved and that there was therefore no need to participate in Eskom’s public consultation process.
“A public participation process can only be meaningful if people have accurate information,” said Kleynhans.
OUTA has instructed its attorneys to investigate legal remedies that could help ensure electricity supplies remain uninterrupted while protecting residents and businesses from the consequences of the dispute.
“Whilst the public engagement process continues, we believe that this may require legal intervention to ensure residents and business interests are protected and that the customers of CoJ do not become collateral damage,” said Adv. Stefanie Fick, Executive Director of OUTA’s Accountability Division.
The organisation has expressed concern that public participation may have been undermined by reports suggesting a settlement had already been reached. OUTA is encouraging residents, businesses and industry stakeholders to submit comments before the 17 June 2026 deadline to ensure their concerns are formally considered.
The dispute remains one of the most significant municipal electricity debt challenges facing South Africa’s power sector. Eskom is reportedly seeking to recover approximately R5.2 billion in historical debt owed by Johannesburg, in addition to around R2 billion on the city’s current account.
Negotiations between Eskom, the City of Johannesburg and City Power have failed to deliver a new repayment agreement despite intervention efforts led by Electricity and Energy Minister Kgosientsho Ramokgopa. Previous repayment arrangements concluded in 2025 were not successfully implemented, while recent proposals to ring fence City Power revenue streams have also failed to secure a breakthrough.
The utility has already disconnected certain municipal streetlights because of non-payment, highlighting the growing impact of the dispute on public infrastructure.
OUTA argues that compliant residents and businesses should not be penalised for governance failures within the municipality and City Power.
“The debt crisis was not created by ordinary residents who pay their accounts every month,” said Kleynhans. “Those responsible for managing electricity revenues and ensuring Eskom is paid must be held accountable, but compliant consumers cannot continue to carry the consequences of government failures.”
As South Africa’s largest metropolitan economy, Johannesburg plays a critical role in national economic activity. Any interruption of bulk electricity supplies could have far reaching consequences for businesses, employment, healthcare facilities, schools, telecommunications infrastructure, water services and investor confidence.
OUTA has called on Eskom to publicly clarify the status of negotiations with the City, extend the public consultation period by 30 days and disclose any agreement reached between the parties.
Submissions can be sent to:
Anna Tsukudu
Key Accounts Manager for Customer Services
Email: cpsubmissions@eskom.co.za
Reference number: CoJ / CP
The closing date for submissions is 17 June 2026.
Eskom is expected to communicate its final decision before 24 June 2026.
Eskom’s plans aim to cut electricity to certain bulk supply points in CoJ by 8 July 2026.
With no confirmed settlement in place and legal options now being considered, OUTA says Johannesburg residents and businesses should continue engaging in the consultation process as the threat of electricity interruptions remains very real.
Author: Bryan Groenendaal
