Johannesburg power supply could face major disruptions after South Africa’s state-owned electricity provider, Eskom, warned that it may reduce or terminate electricity supply to parts of the country’s largest city over mounting unpaid debts.
In a statement issued on Tuesday, Eskom said the Johannesburg metropolitan authority and its electricity distributor, City Power, owe a combined 5.26 billion rand, equivalent to about $315 million.
The utility further disclosed that an additional 1.58 billion rand payment is due on June 5.
Eskom Warns of Supply Interruptions
Eskom said it has formally notified the city of its intention to “reduce, interrupt and/or terminate the supply of electricity” to certain bulk supply points linked to Johannesburg and City Power.
According to the utility, efforts to recover the outstanding debt have been ongoing for more than two years, but the municipality has repeatedly failed to meet agreed payment obligations.
The City of Johannesburg had not publicly responded to requests for comment at the time of reporting.
Financial Pressure Mounts
Johannesburg’s financial challenges have come under growing scrutiny in recent months following concerns raised by National Treasury over the state of the city’s finances.
The latest development adds further pressure to South Africa’s economic hub, where stable electricity supply remains critical for businesses, industries and households.
Eskom itself has faced years of financial difficulties, although the utility recently reported its first full-year profit in eight years following government bailouts and improved performance from its coal-fired power stations.
The dispute now raises concerns about the potential economic impact should electricity restrictions be implemented in Africa’s most industrialised city.
READ ALSO: Ghana Public Debt Falls to 42.2% of GDP as Fiscal Consolidation Gains Momentum
