Cape Town – State power utility Eskom has warned that it may interrupt electricity supply to several municipalities across South Africa that have failed to settle their electricity accounts.
Eskom has initiated a formal consultation process that could lead to electricity being cut in 14 municipalities that have accumulated large unpaid debts. The utility said the decision comes as it tries to recover billions of rand owed by local governments.
The power utility explained that the municipalities targeted for possible supply interruptions have outstanding electricity debts of more than 18 months and have also failed to meet conditions linked to the National Treasury’s municipal debt relief programme.
In a statement, Eskom said it is attempting to recover a massive R110 billion in unpaid municipal electricity debt, which continues to threaten the financial sustainability of the power utility.
Eskom initiates a public consultation process on its intention to interrupt electricity supply to address escalating municipal debt, protect affordability, strengthen financial sustainability, and advance sector reform. pic.twitter.com/voJ9f0KIGo
— Eskom Hld SOC Ltd (@Eskom_SA) March 5, 2026
The power utility said the process forms part of its efforts to recover debt and maintain the stability of the electricity supply system.
“We have to address rising arrear debt to protect the operational stability we have restored and the financial discipline we have rebuilt,” said Agnes Mlambo, Eskom’s Group Executive for Distribution.
She added that resolving the issue is critical not only for Eskom but also for the broader economy.
“Through the turnaround, we are enabling businesses to protect and create jobs and supporting strategic industries to remain competitive,” Mlambo said.
Eskom has begun a legal consultation process under the Promotion of Administrative Justice Act (PAJA), which requires the utility to notify affected municipalities and allow them to make representations before electricity supply can be reduced or cut.
The power utility said it had previously attempted to resolve the matter through engagements under the Intergovernmental Relations Framework Act, but these efforts had not succeeded in recovering the outstanding payments.
Proposals
While Eskom did not officially name all the municipalities affected, the statement noted that the defaulters are located mainly in Mpumalanga, the Free State, North West and the Eastern Cape, with Enoch Mgijima in the Eastern Cape mentioned among the areas facing possible action.
Eskom said that the consultation process will allow municipalities and other stakeholders to submit proposals or reasons why electricity supply should not be interrupted before the utility decides on further steps.
The utility also urged all stakeholders to support efforts aimed at finding a sustainable solution to the growing municipal debt crisis, warning that continued non-payment poses a significant financial risk to the electricity system.
If the consultations fail to produce workable payment arrangements, Eskom may proceed with credit control measures that could result in electricity supply interruptions in the affected municipalities.
