KEY POINTS
- Ekurhuleni will repay its R3.4 billion electricity debt to Eskom, with half already paid
- The remaining balance will be settled over 18 months under a structured agreement
- The deal prevents immediate power cuts and ends ongoing legal disputes between both parties
The City of Ekurhuleni has reached an agreement with Eskom to settle its outstanding electricity debt of R3.4 billion. The deal follows concerns that bulk electricity supply to the municipality could be reduced due to unpaid arrears.
According to a joint statement issued on March 13, the municipality has already paid R1.7 billion, representing half of the total debt. The remaining balance will be cleared over an 18-month period under the agreed repayment plan, while the city continues to meet its current electricity payment obligations.
Both parties confirmed that the repayment arrangement will be formalized as a court order, effectively bringing an end to ongoing legal disputes related to electricity supply and outstanding payments. The move is expected to stabilize relations between the municipality and the power utility.
Residents assured of stable electricity supply
Authorities reassured residents and businesses across Ekurhuleni that there is no immediate risk of electricity supply being disconnected. The agreement ensures continuity of service while addressing the city’s historical debt challenges.
Eskom and the municipality jointly urged residents to continue paying for municipal services, emphasizing that consistent revenue collection is critical to sustaining and improving electricity supply and other essential services.
Both parties stated that they will maintain transparent communication and provide updates as the repayment process progresses, signaling a collaborative approach to resolving the issue.