Johannesburg's City Power and Eskom have reached a settlement agreement to resolve a longstanding billing and debt dispute. Under the terms announced by Electricity Minister Dr. Kgosientsho Ramokgopa and Johannesburg Mayor Dada Morero on June 24, 2025, City Power will repay Eskom R3.2 billion over four years. Eskom has agreed to write off at least R830 million from the total debt. The agreement aims to address the electricity crisis in Johannesburg, where residents have faced decades of incorrect billing and inefficient revenue collection. Despite this settlement, broader challenges related to billing and pricing structures persist across South Africa's electricity distribution sector. Meanwhile, municipalities owe Eskom more than R90 billion in total, with businesses around Johannesburg owing over R60 billion. Separately, in the City of Ekurhuleni, residents in Thembisa have protested against approved electricity tariff hikes for the 2025/26 financial year, specifically opposing a R126 increase. The protests escalated to road blockages and confrontations with police, leading Ekurhuleni Mayor Nkosindiphile Xhakaza to suspend the tariff hike in response to the unrest.
There is a tense stand-off between residents and police in Phomolong, Tembisa with locals blocking roads with burning tyres and debris following an electricity hike by the City of Ekurhuleni. | @ntwaagae https://t.co/JX7eTzTrX1
[BREAKING NEWS] Ekurhuleni Mayor Nkosindiphile Xhakaza suspends Thembisa electricity hike. Residents are protesting over R126 tariff increase. #eNCA #DStv403 https://t.co/YaquuwKiS9
[LIVE NOW🔴] Tensions are high in Thembisa where residents are protesting against electricity hikes. #eNCA reporter @moeraneb14 reports. https://t.co/0q240yqpXx