Ekurhuleni residents and businesses can breathe a sigh of relief as the City of Ekurhuleni and Eskom have reached a crucial agreement on a payment plan to address the municipality’s outstanding debt, thereby avoiding immediate interruptions to their electricity supply.
In a joint statement released on Friday, March 13, 2026, the two parties confirmed that Eskom had earlier issued a notice under the Promotion of Administrative Justice Act (PAJA) on 5 March, indicating its intention to interrupt or reduce the bulk electricity supply to the city due to unpaid electricity bills. However, following engagements between the power utility and the municipality, both sides agreed on a repayment arrangement that will allow the city to settle its arrears while continuing to pay for its current electricity consumption.
Eskom and Ekurhuleni Agreement Details
According to the statement, the agreement will be made an order of court and will bring an end to all active litigation between Eskom and the City of Ekurhuleni relating to bulk electricity supply. The municipality acknowledged Eskom’s legal responsibility to safeguard the sustainability of the national electricity supply system, as outlined on the Eskom website. Eskom, in turn, is required by law to ensure financial sustainability and treat all customers fairly.
The City of Ekurhuleni reaffirmed its commitment to honouring the repayment agreement and paying future electricity accounts when they become due. As part of the arrangement, the city has already paid R1.7 billion of the R3.4 billion it owes Eskom during March in line with the agreed payment plan. The remaining balance will be settled over a period of 18 months, while the municipality continues to meet its ongoing electricity obligations.
Payment Plan and Implications
The payments are seen as a significant step towards stabilising the city’s electricity account and addressing historical debt while ensuring that current payments are made on time. Authorities assured residents and businesses that, because of the new agreement and intervention, there is no immediate risk of Eskom switching off the bulk electricity supply to Ekurhuleni. Residents were also urged to continue paying for municipal services, as revenue collection remains crucial to maintaining and improving service delivery.
Some key points to note about the agreement include:
- The City of Ekurhuleni will pay R1.7 billion immediately and the remaining R1.7 billion over 18 months.
- The agreement will bring an end to all active litigation between Eskom and the City of Ekurhuleni.
- Ekurhuleni residents and businesses will not face immediate interruptions to their electricity supply.
Both Eskom and the City of Ekurhuleni said they remain committed to transparent engagement and will continue to keep the public informed as discussions progress. For more information on Eskom’s financial situation, you can visit the National Treasury website to learn about the R140bn allocated to Eskom over the past two years to help pay off some of its debt.</p)
