Eskom warns of possible electricity supply interruption to Govan Mbeki Municipality over R6.5bn debt

Eskom Holdings SOC Ltd (Eskom) hereby gives notice to all parties that are likely to be materially and adversely affected by its intention to interrupt bulk supply to Govan Mbeki Municipality (the Municipality) with effect from 8 May 2026. The Municipality has failed/neglected, or refused to settle its electricity account with Eskom on the due date, despite several interventions, including dispute resolution under the Intergovernmental Relations Framework Act, 2005 (IRFA). The Municipality is currently indebted to Eskom in the amount of R6 581 118 484 (six billion, five hundred and eighty one million, one hundred and eighteen thousand, four hundred and eighty-four rands), as at 31 December 2025, for the bulk supply of electricity (“the electricity debt”).

In March 2023, the National Treasury introduced the Debt Relief Programme through Circular 124, in accordance with section 34(1) of the MFMA and the IRFA. The Circular provides that Eskom is to write off the municipal debt over three years, subject to, among other conditions, the municipality paying its current account henceforth. On 1 August 2023, the Municipality was admitted to the Debt Relief Programme.

The Municipality has failed to meet the conditions of the Debt Relief Programme, and among others, is persistently failing to pay invoices in full for the bulk supply within 30 days. Compliance with this requirement would have resulted in no further growth of the debt and a subsequent write-off of what the Municipality owes Eskom. On the contrary, the overdue debt has increased by a staggering R2,817,629,356.51 from the date the Municipality was admitted into the Debt Relief Programme.

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On 22 February 2026, the National Treasury issued the Municipality with a letter notifying that its participation in the Debt Relief Programme will be terminated by 01 April 2026, unless the council of the Municipality resolves to conclude the Distribution Agency Agreement (the DAA) with Eskom by 27 March 2026. The DAA is one of the IRFA-oriented interventions which allows Eskom to assist municipalities with services such as technical skills development, maintenance and operations of the municipality network, energy loss management, pricing and tariff structuring, billing function, and revenue management and collection. With this letter being issued by the National Treasury, the dispute resolution process in terms of IRFA is deemed concluded, and Eskom has the right to exercise its statutory powers to interrupt/reduce bulk electricity to the Municipality.

Under the circumstances, it is appropriate for Eskom to explore further remedies to stop the debt from spiralling out of control. The only option available to Eskom is reduction, disconnection and/or termination of the supply as empowered by the Electricity Regulation Act, 2006, unless: Public representations, submissions, comments and/or requests for further information should be submitted to: Senior Advisor: Key Sales and Customer Services

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