Eskom is taking South Africa's largest city to court over the alleged failure by City Power to pay debts totalling nearly R1.1-billion.
The utility said it has been "left with no choice" but to apply to the high court for a declaratory order to force City Power to pay up.
The metro's electricity utility is struggling to keep the city's ageing power infrastructure functioning amid a skills deficit, rampant vandalism and theft of its infrastructure, and an insufficient budget for maintenance and capital programmes.
The case against City Power has been enrolled for 4 June, Eskom said in a statement on Monday. It said City Power started defaulting on its payments in October 2023, and no payment was received for the March 2024 invoice.
"The debt owed by City Power has reached unprecedented levels, exacerbating Eskom's already-strained financial situation," Eskom said.
"This dire situation not only undermines Eskom's financial sustainability but also threatens its ability to maintain essential infrastructure, invest in new technologies and meet the growing energy demands of the province (Gauteng)," it added.
It said City Power had declared a dispute with it recently over "potential overbilling on bulk purchase invoices dating back to 2021".
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