The City of Johannesburg has paid off its outstanding debt to Eskom, bringing an end to a long-running dispute over an overdue bill of more than R5.2 billion. Eskom confirmed on Friday that it had received the final payment from the city, settling the total accumulated overdue amount. The power utility said the debt amounted to R5,255,421,994.16.
The payment follows a period of mounting concern over Johannesburg’s unpaid Eskom account. Earlier this year, Eskom warned that it could take steps to cut electricity supplies to the country’s economic hub over the outstanding debt. The final payment means the city has now cleared the amount owed to the national power utility.
City Of Johannesburg Settles R5.2 Billion Eskom Debt
Johannesburg Mayor Dada Morero welcomed the settlement, describing it as an important step towards improving the city’s financial position.
The City of Johannesburg said it is committed to ensuring that future accounts are paid within the required timeframes. Morero said the settlement marked progress in the city’s efforts to strengthen financial management.
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“This is a significant milestone in the city’s journey towards financial sustainability and responsible governance,” Morero added.
The city has also committed to avoiding a repeat of the situation that resulted in the substantial Eskom arrears. Johannesburg’s Eskom debt had become a major issue as the utility pursued payment of the outstanding account. The city said future accounts would be settled on time.
Eskom Confirms Final Payment From Johannesburg
Eskom confirmed that the outstanding amount has now been fully settled by Johannesburg. The utility said the final payment brought the accumulated overdue debt to an end. The confirmation follows months of discussions around the city’s financial obligations to Eskom.
“Eskom has today confirmed receipt of the final payment, settling the total accumulated overdue debt of R5,255,421,994.16,” the power utility confirmed in a statement on Friday.
The settlement removes the outstanding debt that had prompted Eskom to warn about possible consequences for electricity supply. The R5.2 billion Eskom debt was among the financial pressures facing the city as it worked to address its obligations. The payment ensures that the amount identified by Eskom has been cleared.
Electricity Minister Kgosientsho Ramokgopa also welcomed the conclusion of the Johannesburg Eskom debt matter. He said the outcome demonstrated the effectiveness of the inter-governmental relations model. Ramokgopa also referred to the continued electricity supply to Johannesburg residents and businesses.
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“We are pleased to see this matter reach a definitive conclusion. We have ensured that the residents and businesses of Johannesburg continue to receive an uninterrupted power supply while safeguarding the financial sustainability of our national utility,” he said.
The resolution comes as Johannesburg seeks to strengthen its financial sustainability and meet its obligations to major service providers. The City of Johannesburg has said it will ensure that future accounts are paid on time. Eskom’s confirmation of the final payment formally closes the outstanding R5.2 billion debt.
