Eskom has issued a notice of intention to cut power at certain pre-determined times of day to the City of Johannesburg (CoJ) and City Power due to an unpaid debt of R4.9 billion, with an additional R1.4 billion expected to be due by the end of November.
The notice, issued in accordance with the Promotion of Administrative Justice Act (PAJA), follows the utility making numerous efforts to reach a resolution regarding the debt with the city.
Eskom said it could no longer absorb the costs of Johannesburg’s unpaid electricity bills without risking further financial strain on its operations.
It said when municipalities like the CoJ do not pay it on time, it is forced to secure costly loans to fund essential operations, leading to an exponential rise in electricity costs.
“The failure to pay by the CoJ is contributing to the growing municipal debt which, as at the end of September 2024, stands at R90 billion,” Eskom said.